Chinese electric vehicle (EV) giant BYD has pledged to collaborate with rival Tesla in the fight against petrol-powered cars, despite fierce competition between the two automakers for dominance in the global EV market. BYD’s executive vice-president Stella Li emphasized the need for industry-wide cooperation, arguing that internal combustion engine (ICE) vehicles remain the common enemy of all EV manufacturers.
“Our common enemy is the internal combustion engine car. We need to work together to make the industry change,” Li said in an interview with the Financial Times. Her remarks come as BYD accelerates its European expansion while Tesla faces declining sales in the region, partly attributed to CEO Elon Musk’s increasing political activism.
Speaking at a BYD showroom in London, Li asserted that China is more open to foreign businesses than Western countries, despite growing trade tensions with Brussels and Washington. She encouraged international automakers to enter the Chinese market, stating, “The government will support you and they’ll work with you to allow any technology to be realized.”
BYD is rapidly expanding its presence in Europe, aiming to capture market share through its advanced smart driving technologies, including the recently announced “God’s Eye” self-driving system, which will be available in most BYD models at no extra cost. The move has sparked concerns within the industry, with analysts predicting that competitors may be forced to lower prices on driver-assistance technologies to stay competitive.
To counter higher European tariffs on Chinese-made EVs, BYD is setting up local production facilities in Hungary and Turkey. The company also plans to raise up to $5.2 billion through a share sale in Hong Kong to fuel its overseas expansion. Meanwhile, the European Union is pushing Chinese automakers to transfer intellectual property to local businesses in exchange for subsidies, while Beijing has responded by urging domestic firms to limit advanced manufacturing abroad.
China has also been tightening export controls on key EV materials, from rare earth elements to the specialized technologies used in refining them into essential components for electric motors. However, Li dismissed concerns over geopolitical tensions, stating that political developments are “short-term” and that consumers will ultimately choose the best products available.
Despite its global ambitions, BYD has ruled out entering the U.S. market due to the Biden administration’s 100% tariff on Chinese EV imports. While the company has explored the possibility of a plant in Mexico, Li confirmed that no final decision has been made.
With EV adoption slowing in some Western markets, BYD is diversifying its offerings, introducing hybrid models such as the Seal U plug-in hybrid to European consumers. The company also plans to launch its premium Denza brand later this year.
Despite economic and political hurdles, Li remains confident in the continued global shift toward EVs. “Why are people still choosing the EV? Because it’s a better car, a smarter car, and it’s higher quality,” she said.
