Europe imposes high tariffs on Chinese electric vehicles, know all you need to know

Chinese automaker BYD on Thursday opened its first electric vehicle plant in Thailand as part of its expansion in Southeast Asia. The move is also part of the company's strategy to make inroads in richer markets like the US and Europe.

The factory inauguration comes on the same day the European Union is expected to start imposing higher tariffs on electric vehicles made in China due to concerns about competition from cheap Chinese imports.

In the US too, the Biden administration is raising tariffs on Chinese electric vehicles to 100 percent from the current 25 percent. The US currently imports very few Chinese cars. But like the European Commission, it worries that subsidies hurt domestic companies and reduce jobs.

The new factory in Rayong, which is south of Bangkok, was built in just 16 months. And has an annual production capacity of 150,000 vehicles. It makes several BYD models as well as batteries and transmissions. Its opening on Thursday was marked with lavish ceremonies, including the gift of a BYD Dolphin compact hatchback to a charitable foundation under the patronage of the Thai royal family.

The vehicle was the 8 millionth vehicle manufactured by BYD, the company said.

Thailand aims for 30 percent of all vehicles made in the country to be electric by 2030. One in three electric vehicles sold in Thailand is made by BYD. However, most cars on the road still run on gas or diesel.

BYD stands for Build Your Dreams. It sold 3 million vehicles last year. And its exports more than tripled to 243,000. In the first half of this year, the company sold 1.6 million electric vehicles.

It sold 30,650 electric vehicles in Thailand last year. It plans to build the Dolphin, Atto 3, Seal, and Sealion 6 electric vehicle models at its new factory.

BYD says the new factory is expected to create 10,000 jobs. Besides Thailand and China, BYD is building or has already built factories in Brazil, Hungary, and Uzbekistan.

According to BYD, the Dolphin can run 490 kilometers on a single charge. During a recent auto show in Bangkok, the models on display were priced at 859,999 baht ($23,700). However, reports say BYD will offer steep discounts in Thailand on vehicles made at the new factory.