Electric cars from Chinese manufacturers such as BYD are a significant concern for European automakers.
Previous reports have indicated that BYD has margins to match, and Tesla CEO Elon Musk has warned that the Chinese manufacturers will “crush” their Western rivals.
For that reason, the EU is in the process of designing customs tariffs that will ensure that the Chinese cars do not get an unfair advantage in the market.
Thousands of electric cars in the ports
So far, however, the fears appear to be unfounded. Namely, there are lots of unsold BYD cars in European ports.
That BYD does not succeed in selling its electric cars is a stark contrast compared to last year, when the compact SUV Atto 3 was Sweden’s best-selling electric car during the summer.
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Several reasons for the problems
According to representatives from BYD, which is short for Build Your Dreams, there are several explanations for declining sales.
Among other things, they point to weaker demand due to too high prices, but also to problems related to quality control and tensions internally, reports The Wall Street Journal.
It also points to an inexperience when it comes to exporting and shipping cars, which leads to them doing poorly on the way from the factory to customers and dealers.
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Electric cars are roaring in the ports
The shipping problems have led to several cars having to be repaired on arrival in Europe, and this has according to Handelsblattled to a large number of cars being left standing.
While standing, the cars collect dust, and some cars are said to have even begun to mold. Thousands of cars must also have been standing for so long that the air ran out of the tires.
Having to fix this hardly eases the employees’ workload.
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Managers uncertain about the future
According to the Wall Street Journal, the problems have led to concern internally, as several BYD managers believe that the repairs they have been forced to carry out on exported cars only work on a small scale.
This chimes poorly with the company’s grand ambitions to sell 400,000 cars outside of China in 2024.
To fulfill the ambition, the company has invested in a fleet of freighters, and the first of eight ships with space for 8,000 cars has already arrived in Europe.
At the same time, there are already over 10,000 unsold cars in parking lots in Europe, moldering and getting punctures, while the certificates that allow the cars to be sold within the EU are about to expire.
It can be assumed that BYD hopes to break the ice on the electric car market in the near future.
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