BYD and other Chinese automakers have studied the European auto market for years. Now, it’s time to put their knowledge to the test and go all-in on the European auto market.
BYD’s strategy to take over Europe was recently revealed in a report by Reuters. The publication also shared details about how other Chinese automakers are entering the European market and their plans to beat top-selling brands like Tesla and Volkswagen in the EU’s local electric vehicle (EVs) market.
Below are the strategies BYD and Chinese automakers are implementing to deploy their vehicles in Europe.
- Understand European car consumers and their needs
- Improved marketing to increase brand awareness
- Expand dealership networks
- Build an extensive after-sales care service network, including improved service-and-repair operations.
- Protect resale values
The roads are buzzing with SUPER DM technology. The BYD SEAL U DM-i combines a range of more than 1000km with an attention to detail in every inch of its interior. It's the perfect synthesis of comfort and adventure.#BYD #BuildYourDreams #BYDSEALUDMi pic.twitter.com/gSNGtLzQV4— BYD Europe (@BYD_Europe) May 22, 2024
China Cars with Europeans in Mind
BYD and Chinese automakers have learned that adapting and importing cars from China to Europe is not enough. They have studied European car owners to understand the details they look for when purchasing a vehicle. As a result, some Chinese car brands have started designing cars from scratch for European buyers.
For instance, Chinese automakers have learned that safety ratings are important to European car owners, so they have improved their vehicles with safety as a priority.
“In China, the purchase price is important. But for European consumers, it’s not just price, but total cost of ownership, including maintenance, service, and residual values,” commented Bo Yu, JATO Dynamics’ Greater China Country Manager.
China-based car manufacturers are also strengthening and expanding repair-and-service operations to enhance after-sales care in Europe. Plus, they have started understanding the importance of resale values for European car owners.
“There are hard rules on issues like safety and that are clear, and then there are soft rules that aren’t written down. The Chinese are very eager to learn the soft rules,” said Ben Townsend, Head of Automotive at Thatcham.
Chinese Automakers’ Biggest Advantage
Electric vehicles have offered brands—both old and new—a chance to grow and expand in the transitioning auto market worldwide. Many automakers have not been phased by the EV market’s slowdown and are charging ahead in electric vehicle development. As such, EVs have become a good entry into the European market for China-based automakers.
Electric vehicles offer Chinese automakers one significant advantage in the global auto market: affordable prices.
China has also started to promote and grow its new energy vehicle (NEV) market, which includes battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). The Chinese government financially supports local car companies through subsidies and its ever-expanding EV supply chain. China is ahead regarding battery-minerals mining, a critical part of the EV supply chain that affects costs.
The local government’s support has resulted in decreased EV prices, like the BYD Seagull, which is under $10,000 in China. The United States has tried to combat against Chinese EVs’ affordable prices by increasing import tariffs by 100%. Europe is expected to raise import tariffs for Chinese EV imports as well. However, the EU’s import tariffs might not be enough to dissuade consumers from affordable EV prices.
The BYD Seagull, for example, is expected to start below $20,000 in Europe even after EU tariffs. Volkswagen, one of Europe’s top car brands, doesn’t expect to launch an EV below €20,000 ($21,631) until 2027.
Equipped with a Europe-focused affordable EV, Chinese automakers have one more obstacle to tackle: brand awareness. BYD is already working on spreading its brand in Europe by participating in and funding local sporting events, like the Europe 2024 soccer championship. It is also working closely with local dealerships.
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Elon Musk
SpaceX secures win as US labor board drops oversight case
The NLRB confirmed that it no longer has jurisdiction over SpaceX.
SpaceX scored a legal victory after the National Labor Relations Board (NLRB) decided to dismiss a case which accused the company of terminating engineers who were involved in an open letter against founder Elon Musk.
The NLRB confirmed that it no longer has jurisdiction over SpaceX. The update was initially shared by Bloomberg News, which cited a letter about the matter it reportedly reviewed.
In a letter to the former employees’ lawyers, the labor board stated that the affected employees were under the jurisdiction of the National Mediation Board (NMB), not the NLRB. As a result, the labor board stated that it was dismissing the case.
As per Danielle Pierce, a regional director of the agency, “the National Labor Relations Board lacks jurisdiction over the Employer and, therefore, I am dismissing your charge.”
The NMB typically oversees airlines and railroads. The NLRB, on the other hand, covers most private-sector employers, as well as manufacturers such as Boeing.
The former SpaceX engineers have argued that the private space company did not belong under the NMB’s jurisdiction because SpaceX only offers services to “hand-picked customers.”
In an opinion, however, the NMB stated that SpaceX was under its jurisdiction because “space transport includes air travel” to get to outer space. The mediation board also noted that anyone can contact SpaceX to secure its services.
SpaceX had previously challenged the NLRB’s authority in court, arguing that the agency’s structure was unconstitutional. Jennifer Abruzzo, the NLRB general counsel under former United States President Joe Biden, rejected SpaceX’s claims. Following Abruzzo’s termination under the Trump administration, however, SpaceX asked the labor board to reconsider its arguments.
SpaceX is not the only company that has challenged the constitutionality of the NLRB. Since SpaceX filed its legal challenge against the agency in 2024, other high-profile companies have followed suit. These include Amazon, which has filed similar cases that are now pending.
News
Tesla accuses IG Metall member of secretly recording Giga Berlin meeting
The union has denied the electric vehicle maker’s allegations.
Police seized the computer of an IG Metall member at Tesla Giga Berlin on Tuesday amid allegations that a works council meeting was secretly recorded.
The union has denied the electric vehicle maker’s allegations.
In a post on X, Gigafactory Berlin plant manager André Thierig stated that an external union representative from IG Metall attended a works council meeting and allegedly recorded the session. Thierig described the event as “truly beyond words.”
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote in his post on X.
Police later confirmed to local news outlet rbb24 that officers did seize a computer belonging to an IG Metall member at the Giga Berlin site on Tuesday afternoon. Tesla stated that employees had contacted authorities after discovering the alleged recording.
IG Metall denied Tesla’s accusations, arguing that its representative did not record the meeting. The union alleged that Tesla’s claim was simply a tactic ahead of upcoming works council elections.
The next works council election at Giga Berlin is scheduled for March 2 to 4, 2026. The facility’s management had confirmed the dates to local news outlets. The official announcement marks the start of the election process and campaign period.
Approximately 11,000 employees are eligible to participate in the vote.
The previous works council election at the plant took place in 2024, and it was triggered by a notable increase in workforce size. Under German labor law, regular works council elections must be held every four years between March 1 and May 31.
Elon Musk
Elon Musk’s xAI plants flag in Bellevue AI hotspot
The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.
Elon Musk’s artificial intelligence company xAI has leased a full floor at Lincoln Square South in downtown Bellevue, WA, as per city permit filings.
The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.
Public records indicate that xAI leased roughly 24,800 square feet in Lincoln Square South. The location was previously occupied by video game company Epic Games. Lincoln Square South is part of the Bellevue Collection, which is owned by Kemper Development Co.
The lease was first referenced in January by commercial real estate firm Broderick Group, which noted that an unnamed tenant had secured the space, as stated in a report from the Puget Sound Business Journal. Later filings identified xAI as the occupant for the space.
xAI has not publicly commented on the lease.
xAI hinted at plans to open an office in the Seattle area back in September, when the startup posted job openings with salaries ranging from $180,000 to $440,000. At the time, the company had narrowed its location search to cities on the Eastside but had not finalized a lease.
xAI’s Bellevue expansion comes as Musk continues consolidating his businesses. Last week, SpaceX acquired xAI in a deal that valued the artificial intelligence startup at $250 billion. SpaceX itself is now valued at roughly $1.25 trillion and is expected to pursue an initial public offering (IPO) later this year.
Musk already has a significant presence in the region through SpaceX, which employs about 2,000 workers locally. That initiative, however, is focused largely on Starlink satellite development.
Bellevue has increasingly become a center for artificial intelligence companies. OpenAI has expanded its local office footprint to nearly 300,000 square feet. Data infrastructure firms such as Crusoe and CoreWeave have also established offices downtown.
SpaceX secures win as US labor board drops oversight case
Tesla accuses IG Metall member of secretly recording Giga Berlin meeting
