Small, well-built Chinese EV called the Seagull poses a big threat to the US auto industry

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The rapid emergence of low-priced EVs from China could shake up the global auto industry in ways not seen since Japanese makers arrived during the oil crises of the 1970s.

A Seagull electric vehicle from Chinese automaker BYD for test driving is parked outside a showroom in Beijing, Wednesday, April 10, 2024. The tiny, low-priced electric vehicle called the Seagull has American automakers and politicians trembling. The car, launched last year by Chinese automaker BYD, sells for around $12,000 in China.

Tariffs on imported Chinese vehicles probably will keep the Seagull away from America’s shores for now, and it likely would sell for more than 12 grand if imported. A Seagull electric vehicle from Chinese automaker BYD for test driving is parked outside a showroom in Beijing, Wednesday, April 10, 2024. The tiny, low-priced electric vehicle called the Seagull has American automakers and politicians trembling. The car, launched last year by Chinese automaker BYD, sells for around $12,000 in China.

Outside of China, EVs are often pricey, aimed at a higher-income niche market. But Chinese brands that are not yet global household names are offeringthat will appeal to the masses — just as the U.S., European and many other governments are encouraging a shift away from gasoline-powered vehicles to fight climate change.

There’s no single miracle that explains how BYD can manufacture the Seagull for so little. Instead, Woychowski said the entire car, which can go 252 miles per charge, is “an exercise in efficiency.” BYD designs all aspects of its vehicles with cost and efficiency in mind. For instance, the Seagull has only one windshield wiper, eliminating one motor and one arm, saving on weight, cost and labor to install.

“You’re going to have to come and be extremely serious about this, and you better park your paradigms at the door,” Woychowski said. “Because you’re going to have to do things differently.” BYD would have to modify its cars to meet U.S. safety standards, which are more stringent than in China. Woychowski says Caresoft hasn’t done crash tests, but he estimated that would add $2,000 to the Seagull’s cost.

 

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