BYD received 3.4 billion euros via Chinese aids, says study

BYD started off as a battery manufacturer and has now become the world's largest EV brand.

A new study by Germany's Kiel Institute of World Economy states that Chinese EV maker, BYD, has received over 3.4 billion euros of direct government subsidies as part of the country's push to dominate the global electric vehicle industry.

BYD, China's largest EV maker, is said to have received 220 million euros in 2020, which jumped to 2.1 billion euros by 2022. As per reports, the EV maker is also benefitting from supporting local battery manufacturers. The Kiel Institute of World Economy stated that these subsidies given to BYD "have allowed Chinese firms to scale up rapidly, to dominate the Chinese market, and to facilitate increasing expansion into EU markets."

The Kiel Institute also mentioned how almost all of China's listed companies have received direct handouts, which are "at least three to four times higher" than in any large EU country.

However, Chinese authorities have come out stating that its carmakers are winning the EV race because of superior products, relying on "continuous technological innovations".

BYD started off as a battery manufacturer and has now become the world's largest EV brand, rivalling the likes of Tesla. At the end of 2023, BYD's net income was reported to be around $4.2 billion, thanks to selling a range of EVs and PHEVs.

Source: Bloomberg