BYD, the world’s best-selling EV manufacturer, received £2.9 billion in state subsidies to help it dominate the industry, a European study found.
The findings were part of a study by the Kiel Insititute for the World Economy and allege the Chinese government provided the subsidies in a push to dominate the EV car market.
“China’s subsidy policy has been a controversial issue for years: European industries often struggle to compete with Chinese counterparts on price. However, without China’s subsidized technology, products crucial for Germany’s green transformation would become more expensive and scarce as well,” said Dirk Dohse, research director at the Kiel Institute.
Tesla was overtaken by BYD as the top-selling electric vehicle at the start of 2023 after the Chinese company was able to undercut prices and grow its offering to Europe.
The European Commission launched an anti-subsidy investigation last September into the exports of Chinese vehicles.
Depending on the findings, the investigation could result in tariffs on Chinese vehicles as a punishment.
