But a global agreement between BYD and ridesharing firm Uber that explicitly excludes the US from its scope adds credence to the Chinese firm’s claims that it does not want the hassle of trying to break the increasingly Sinophobic American market.
“There is too much confusing noise from different politic[al factions],” Li said in February. She also criticised the Biden administration’s Inflation Reduction Act (IRA) incentives package for “a lot of restrictions” around Chinese suppliers which in turn “brings a lot of complexity to current EV manufacturing”, concluding that the US “has become more of a protected market”.
Sign up for EV inFocus
EV inFocus: Hard news for the corporate e-mobility sector
No spam. Unsubscribe anytime.
And now her firm has stuck a partnership to bring 100,000 new BYD electric vehicles onto the Uber platform across what are described as “key global markets”. But while the alliance will begin in Europe and Latin America, it will expand to include markets in the Middle East, Canada, Australia, and New Zealand, but not the US.
The two companies will also collaborate on future BYD “autonomous-capable” vehicles to be deployed on the Uber platform.
Uber says its drivers are going electric five times faster than private buyers. But surveys of these drivers suggest price and financing availability are barriers to even faster uptake. The firms promise that BYD vehicles will offer greater affordability and lower maintenance and repair costs.
The companies may also collaborate on discounts on charging, vehicle maintenance and insurance, as well as financing and lease offers.
“When an Uber driver makes the switch to an EV, they can deliver up to four times the emissions benefits compared to a regular motorist, simply because they are on the road more,” says Uber CEO Dara Khosrowshahi. “Many riders also tell us their first experience with an EV is on an Uber trip, and we’re excited to help demonstrate the benefits of EVs to more people around the world.”
For BYD, there is the obvious benefit both of additional demand for their vehicles, but also increased brand awareness. “We look forward to seeing our cutting-edge EVs become a common sight on the streets of cities worldwide,” says Li.
But not the cities of the US. The EV inFocus view is increasingly that the American market will be its own separate EV ecosystem, largely free of any Chinese involvement, given across-the-aisle political suspicion of Chinese involvement in the US automotive industry that can even surprise non-American industry insiders with its vehemence.
Exactly how that will work with existing collaborations on US soil between OEMs like Ford and GM and Chinese battery firms such as Catl and Gotion remain potentially thorny parts of this journey. However, the BYD-Uber deal reinforces the impression that Chinese OEMs are likely to consider the US off-limits for the foreseeable future.
Peter boasts 20+ years’ experience in energy/commodity journalism & analysis.
He is convinced the next few decades will be all about energy transition. Insider Focus is a front-row seat for the ride.
