Australia’s electric vehicle (EV) market is experiencing a significant surge as Chinese EV manufacturers, particularly BYD, challenge Tesla’s dominance. While this boom presents more affordable options for consumers, it has also sparked fresh warnings for motorists regarding safety, servicing, and data privacy.
Chinese automotive giant BYD, which became the world’s top EV maker in January, set a new record for monthly sales in Australia. BYD sold over 1900 cars in May, surpassing its previous record of 1622, thanks to its competitively priced Atto 3 model starting at $44,499. In comparison, Tesla’s base Model 3, even after price cuts, starts at $54,900, which still costs up to $80,900 for the Performance variant.
Overall monthly sales of battery EVs saw a slight increase, accounting for 8.1 per cent of new cars sold, up from 7.7 per cent in May 2023, according to the Federal Chamber of Automotive Industries (FCAI). EV sales in Australia have grown from about 1900 per month in 2022 to 8000 per month this year.
“We’re certainly seeing increased activity across our business, our websites are recording really strong inquiry, as are our dealers,” David Smitherman, chief executive of Australian BYD importer EVDirect, told News Corp Australia earlier this month. “I think it’s certainly getting very competitive out there, that’s for sure, with a lot more product being offered.”
The influx of Chinese-made EVs, which constitute over 80% of EV sales in Australia, has raised various concerns. “If you rely on one geographic concentrated area for big major products like EVs, that is always very risky in terms of supply chains, in terms of the production capabilities,” Marina Zhang from the Australia China Research Institute told the ABC last week.
“Any supply chains are subject to external shocks, let’s not forget about Covid in 2020, the whole world was struggling with breakdowns of supply chains for some essential suppliers, so that is always a danger.”
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Dr. Awadhesh Prasad, a Canberra resident who purchased a BYD after concluding Tesla was overpriced, shared his experience: “My wife’s concerns were related to the brand reputation of BYD. If something goes wrong with the car, it will not be very easy to fix quickly, and unfortunately, that concern came largely true.”
Despite initial compliance issues, BYD’s models have since received five-star safety ratings from the Australasian New Car Assessment Program (ANCAP). However, broader geopolitical implications and security risks remain a concern. Jack Norton from the Australian Strategic Policy Institute (ASPI) highlighted the potential for data privacy issues, noting, “Modern cars are essentially rolling computers, collecting data ranging from location and routes driven to phone contacts and calls made by drivers. Such data could pose a risk to national security.”
The surge of Chinese EVs is not just an Australian issue. Last week, the European Union announced potential tariffs of up to 38% on Chinese EV imports following an anti-subsidy probe, while the US indicated it would tariff these cars at 100%. This has the potential to escalate into a significant trade war.
Despite these concerns, some experts view China’s dominance in the EV market as beneficial. Swinburne University professor of future urban mobility Hussein Dia said China’s dominance of the Australian EV market was a “good thing for consumers and the planet”, despite continuing concerns over quality and overseas reliance.
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“This is a result of a targeted strategy that built on their strength in advanced battery technologies over the past two decades and their partnerships with leading car manufacturers since 2017,” Prof Dia said in a statement.
“Cheaper EVs are good news for consumers in Australia, particularly in the small to medium car market segment where the available EV choices are still limited. Providing these options to consumers means improving our chances to achieve the mandated emissions reduction targets, and consumers also benefit as a result of reduced running costs because EVs are cheaper to run.”
As Australia’s EV market continues to grow, the rise of Chinese manufacturers like BYD presents both opportunities and challenges. While consumers benefit from more affordable and diverse options, concerns about safety, servicing, data privacy, and geopolitical implications cannot be ignored.
Last year, the hawkish Australian Strategic Policy Institute (ASPI) think tank sounded a warning about China’s rapid rise in the Australian EV market.
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“As cars have become more technologically advanced, they have turned into what are essentially rolling computers,” wrote former editor of ASPI’s The Strategist Jack Norton.
“Modern cars are swathed in cameras and sensors and increasingly connected to the internet for ‘over the air’ tasks like updating software. They collect data ranging from location and routes driven to phone contacts and calls made by drivers. Such data could be used to put together a comprehensive picture of a person’s activities, and, if a car’s owner drives to work at a secure facility, for example, potentially pose a risk to national security.”
“Modern cars are swathed in cameras and sensors and increasingly connected to the internet for ‘over the air’ tasks like updating software. They collect data ranging from location and routes driven to phone contacts and calls made by drivers. Such data could be used to put together a comprehensive picture of a person’s activities, and, if a car’s owner drives to work at a secure facility, for example, potentially pose a risk to national security.”
Tesla not modern cars but old junk, so not security risk?
The surge of Chinese EVs is not just an Australian issue. Last week, the European Union announced potential tariffs of up to 38% on Chinese EV imports following an anti-subsidy probe, while the US indicated it would tariff these cars at 100%. This has the potential to escalate into a significant trade war.
But US dont even allow Chinese EV…, so the tariff announced is just bullshits.