BYD calls for Chinese automotive unity, 'demolish the old legends'
Investing.com | Author Michael Elkins
Published Aug 11, 2023 02:35PM ET
BYD calls for Chinese automotive unity, 'demolish the old legends'
China's top-selling automobile manufacturer, BYD Co (OTC:BYDDF) Ltd ADR (OTC:BYDDY), has ignited a surge of online attention after the automaker signaled for unity, calling for the industry to band together and “demolish the old legends.”
During a recent event commemorating a production milestone, BYD shifted the focus to a grander objective: to spotlight China's ascent as a powerhouse in the global automotive manufacturing arena.
"I believe the time has come for Chinese brands," said founder Wang Chuanfu. "It's an emotional need for the 1.4 billion Chinese people to see a Chinese brand becoming global."
China's carmakers are caught in a fierce price competition sparked by Tesla (NASDAQ:TSLA) in January, and the situation shows no signs of easing. They are also contending in the same global markets, facing consumer hesitancy and occasional regulatory hurdles.
During its Wednesday event, BYD aired a video commemorating the establishment of twelve competitors, ranging from state-affiliated FAW Group in 1956 to more recent commercial EV startups like Xpeng (NYSE:XPEV), Nio (NYSE:NIO), and Li Auto Inc (NASDAQ:LI) over the past decade.
The video showcases historical clips, expansive landscapes, and vehicles being prepared for export. "Our stories are different from each other but share the same direction," the narrator says. "There's no distinction between 'you' and 'me'."
The video ends with a call for China's automakers to "demolish the old legends and achieve new world-class brands," under the slogan, "Chinese Autos".
The video went viral on Chinese social media, with several rivals posting notes of admiration.
"I feel proud for China’s auto industry!" said William Li, CEO of Nio. "Salute to BYD!" said Li Xiang, CEO of Li Auto. "Let's give a thumbs up to every participant in the new energy era!"
Car manufacturers cautioned that this message might amplify regulatory vulnerabilities for Chinese brands abroad, particularly in Europe, where Chinese electric vehicle exports are susceptible to potential anti-dumping investigations.
A high-ranking official from China's Great Wall Motor responded by suggesting that Chinese car manufacturers should embrace the "reality of competition".
"At such a critical moment, how can Chinese automakers be together?" Said Great Wall Motors CTO, Wang Yuanli on Friday. "If we only talk about being together but keep our bitterness in our hearts, it would be better to have the fight first."
Shares of XPEV, NIO, and LI are down 3.10%, 1.97%, and 6.55%, respectively in afternoon trading Friday.
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