There is a new development in the automotive sector following the news that BYD has partnered with Uber. This development means American car maker Tesla will find a new rival. At the same time, this will see 100,000 EV cars shipped to the different markets.
BYD and Uber: The partnership
Based in China, BYD has signed a multi-billion dollar joint venture with US-based Uber’s platform across major global markets. The deal will see BYD’s new electric vehicles into different continents or markets.
While the strategic joint venture will not only focus on America, it will begin there including in Europe and Latin America.
Subsequent to the launch in those two continents, the partnership is expected to expand and include markets such as the Middle East, Canada, Australia, and New Zealand.
“This collaboration marks a new era in the electrification of urban mobility, and we look forward to seeing our cutting-edge EVs become a common sight on the streets of cities worldwide,” said Stella Li, Executive Vice President of BYD and CEO of BYD Americas per Mobility Plaza.
With both companies regarded as EV leaders in their respective categories: Uber has the most widely available on-demand EV network in the world, and BYD is a global leader in EV production.
The Moment understands that with this partnership, the companies aim to bring down the total cost of EV ownership for Uber drivers and accelerate the uptake of EVs on the Uber platform globally.
How will Uber drivers benefit from the BYD deal
According to the report, this arrangement is set to offer Uber drivers access to favorable pricing, insurance, financing and other services for BYD cars, the companies said in a statement.
“The companies said the plan would help accelerate the switch to EVs and that they also plan to collaborate in introducing autonomous-capable EVs on the Uber platform. BYD, China‘s largest EV maker, has fast been expanding its reach into world markets after switching entirely to production of EVs and hybrids in 2022,” reports The Independent.
The rapid emergence of low-priced EVs from China is shaking up the global auto industry in ways not seen since Japanese makers arrived during the oil crises of the 1970s.
Despite BYD finding it hard to penetrate the American market as BYD EVs aren’t being sold in the U.S. owing to the 27.5% tariffs on the sale price of Chinese vehicles when they arrive at ports, it remains to be seen how will they compete with Tesla.
The emergence of EVs from China
The rapid emergence of low-priced EVs from China is shaking up the global automotive industry in ways not seen since Japanese makers arrived during the oil crises of the 1970s.
This comes after the European Union imposed provisional duties on Chinese electric vehicles in June this year following allegations that government subsidies give automakers in China an unfair advantage.
However, that has not hindered the Chinese carmaker as they are exploring overseas markets – BYD recently opened a plant in Thailand and plans to build factories in Brazil, Hungary as well as Turkey.
While Uber drivers are going electric five times faster than private car owners, driver surveys indicate that the price of EVs and the availability of financing remain the key barriers to switching.
“Uber and BYD share a commitment to innovate towards a cleaner, greener world, and I am excited to work together towards that future,” said BYD Chairman and President Chuanfu Wang.
Will this be a cause for concern for billionaire Elon Musk and Tesla? Only time will tell but there is no doubt that this deal between BYD and Uber will definitely cause a stir.