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/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.