As China leads the EV race, ‘EV godfather’ warns against focusing on hybrids: ‘Tariffs will only make local industry lazy’ – Aston Martin Lagonda Glb (OTC:AMGDF), BYD (OTC:BYDDY )

Against the backdrop of the global shift to electric vehicles, Andy PalmerThe car company often referred to as the “godfather of electric vehicles” has issued a warning to automakers. He warned against prioritizing hybrids over fully electric vehicles, a strategy he said could put them behind Chinese rivals.

what happened:Palmer, ex. Aston Martin AMGDF CEO and Nissan National Trinity Executives highlighted the rapid progress made by Chinese automakers, such as BYD BYD in the electric vehicle market. These companies have made significant inroads in the country by providing cost-effective and technologically advanced vehicles.

“Chinese cars are very good. Chinese vehicles are very cost-effective,” Palmer said.

Palmer pointed out that Chinese brands excel in battery technology and software and provide extraordinary value.

Palmer attributes China’s success in electric vehicles to its strategic industrial policies, in which the government has invested more than $230 billion in subsidies since 2009. Dongfeng Motor CorporationAs a joint venture with Nissan, he has witnessed China’s aggressive EV strategy firsthand.

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In response to the rise of China, the United States and Europe have implemented tariffs to protect their industries. However, Palmer believes such tariffs could stifle Western competitiveness.

“My experience with tariffs is that it just makes local industry lazy. The gap gets wider,” he said.

He urged automakers to prepare for fierce competition with Chinese companies, especially in Europe, where companies such as BYD and Xpeng Motors are expanding.

why it’s important: The global electric vehicle landscape is developing rapidly, with China taking the lead. According to a September report, 50% of new car sales in China were electric vehicles, compared with only 10% in the United States. % tariff.

In November, China filed a formal complaint with the World Trade Organization over EU tariffs on Chinese-made electric vehicles, intensifying its trade dispute with the EU. The EU decided to impose tariffs of up to 35% on Chinese electric vehicles, which was seen as a response to unfair business practices.

Meanwhile, BYD is expected to surpass Tesla Inc. Tesla Driven by electric vehicle sales growth of 21% and China’s strong market forecast, pure electric vehicle sales will grow significantly by 2024.

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Disclaimer: This content was produced in part with help from Benzinga Neuro, and is reviewed and published by Benzinga editors.

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