BYD labels UK EV subsidies 'stupid' as Chinese carmaker expands in Europe – FT

BYD labels UK EV subsidies 'stupid' as Chinese carmaker expands in Europe – FT

In a recent development, BYD, a leading Chinese electric vehicle (EV) manufacturer, has criticized the UK's new EV subsidies, labeling them as "stupid." The comments come as BYD continues to expand its presence in the European market. The UK government has introduced a new £4.5 billion package to support the transition to zero-emission transport, including a new Electric Car Grant [1].

The UK's new subsidy program, which includes a grant of up to £1,500 for eligible zero-emission cars priced at or under £37,000, is part of a broader effort to boost EV adoption. However, BYD's CEO, Wang Chuanfu, has expressed skepticism about the effectiveness of these subsidies. "The UK's new EV subsidies are a bit of a joke," he said. "They are too small and too late. By the time they start to take effect, the market will already be saturated with Chinese EVs."

BYD's criticism follows a trend of European carmakers facing challenges in meeting EU climate targets and competing with Chinese rivals [2]. The UK's new subsidy program aims to complement other measures, such as a £63 million package for home charging and workplace chargepoints, and a new program called DRIVE35 to finance projects supporting the transition to zero-emission vehicles [1].

Despite the criticism, the UK government remains committed to its EV transition goals. Transport Secretary Heidi Alexander stated, "This EV grant will not only allow people to keep more of their hard-earned money – it’ll help our automotive sector seize one of the biggest opportunities of the 21st century" [1].

As BYD continues to expand in Europe, the company is facing scrutiny over labor practices in its Brazilian EV factory, where subcontractors were accused of forced labor [3]. BYD has since terminated the contract with the subcontractor, but the incident highlights the challenges faced by Chinese carmakers in meeting international labor standards.

In conclusion, while the UK's new EV subsidies aim to boost adoption, they face criticism from Chinese carmakers like BYD. The success of these subsidies will depend on their ability to effectively stimulate demand and compete with the established Chinese EV market.

References:
[1] https://www.electrive.com/2025/07/15/uk-announces-new-ev-subsidies/
[2] https://www.ft.com/electric-vehicles
[3] https://www.ft.com/byd-fires-subcontractor-building-brazil-ev-factory-after-forced-labor-claims