A tiny, low-priced electric car called the Seagull has American automakers and politicians trembling.
The car, launched last year by Chinese automaker BYD, sells for around $12,000 in China, but drives well and is put together with craftsmanship that rivals U.S.-made electric vehicles that cost three times as much. A shorter-range version costs under $10,000.
Tariffs on imported Chinese vehicles probably will keep the Seagull away from America’s shores for now, and it likely would sell for more than 12 grand if imported.
But the rapid emergence of low-priced EVs from China could shake up the global auto industry in ways not seen since Japanese makers exploded on the scene during the oil crises of the 1970s. BYD, which stands for “Build Your Dreams,” could be a nightmare for the U.S. auto industry.
“Any car company that’s not paying attention to them as a competitor is going to be lost when they hit their market,” said Sam Fiorani, a vice president at AutoForecast Solutions near Philadelphia. “BYD’s entry into the U.S. market isn’t an if. It’s a when.”
California is the largest economy in the United States, and one of the largest in the world. It’s also the one with the largest market for EVs in the US. As an added bonus, it’s very conveniently positioned on the west coast, with easy access to shipping lanes from China. And finally, it’s probably the state that’s least likely to care if a US auto maker on the other side of the nation is struggling. Only fifteen states in the US require inspections, and California isn’t one of them. In fact, the only state that isn’t on the east coast that requires an inspection is Texas. All other states have nothing but emissions tests, if that, and any EV would be excluded from those, for obvious reasons.