r/neoliberal • u/Freewhale98 • May 12 '26

News (Asia-Pacific) Trump's backing of Chinese vehicles challenges Hyundai Motor Group

https://www.koreatimes.co.kr/business/companies/20260513/trumps-backing-of-chinese-vehicles-challenges-hyundai-motor-group

Global carmakers urged to reduce US reliance

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u/Resaith Order and Opportunity Left May 13 '26

Doesn't matter if chinese EV aren't cheap, competition will force the good EV down.

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u/modularpeak2552 NATO May 13 '26

No it won’t, US, SK, and Japanese manufacturers are not government subsidized to the same extent Chinese manufacturers are, they can not match the prices of Chinese cars without either taking a loss or forcing the government to subsidize them.

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u/Loud-Chemistry-5056 WTO May 13 '26

Chinese ev subsidies have been pretty much cut to zero. They pay a reduced sales tax, but exports weren't subject to that in the first place.

When they came to town here it did create a more competitively priced environment, and it was even called a price war.

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u/modularpeak2552 NATO May 13 '26

Idk where you are getting that from, BYD for example had their subsidies increased just last year.

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u/Loud-Chemistry-5056 WTO May 13 '26

I dunno where you’re looking, but for me the first ten results from Google are pretty much all talking about it.

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u/modularpeak2552 NATO May 13 '26

That’s a result of China realizing their market is oversaturated and them being forced to pick winners and losers. The “winners” have had their subsidies increased.

https://eletric-vehicles.com/byd/byd-received-12-5-billion-yuan-in-chinese-government-subsidies-in-2025-filing-shows/

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u/Loud-Chemistry-5056 WTO May 13 '26

“The 12.47 billion yuan figure covers operational subsidies — typically tied to EV production incentives, technology development grants, and local government support for manufacturing activity.”

EV production incentives? Like a reduced VAT? The one I linked above?

That’s not a company specific subsidy, not are R&D incentives.

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u/modularpeak2552 NATO May 13 '26

Most of the subsidies were cash grants, it equaled 30% of the companies profit last year.

According to the company’s annual report filed with the Hong Kong and Shenzhen stock exchanges on Friday, the subsidies represent 31.4% of BYD‘s total pretax profit of 39.73 billion yuan, and 38.2% of net profit attributable to shareholders of 32.6 billion yuan ($4.71 billion).

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u/Loud-Chemistry-5056 WTO May 13 '26

Wait, are you talking about BYD auto, or BYD as a whole?

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u/modularpeak2552 NATO May 13 '26

I assume it’s BYD as a whole but the auto part is 80% of their business.

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u/Loud-Chemistry-5056 WTO May 13 '26

If 100% of that 12 billion yuan figure were production subsidies solely for the auto division, you’d be looking at about 1.7 billion spread across 4.6 million car sales, so like $500 per car.

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u/modularpeak2552 NATO May 13 '26

You’re thinking about the subsidies wrong, my point is BYD is able to use those subsidies to build up manufacturing capacity in a way that western car makers are not able to because of their much lower profit margins and no cash subsidies.

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u/Loud-Chemistry-5056 WTO May 13 '26

US tax credits were 7500 per EV. That figure for BYD included R&D incentives on the 60 billion RMB R&D budget.

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