Chinese EV called the Seagull poses a big threat to the U.S. auto industry

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 …

But the rapid emergence of low-priced EVs from China could shake up the global auto industry in ways not seen since Japanese makers exploded on the scene during the oil crises of the 1970s. BYD, which stands for “Build Your Dreams,” could be a nightmare for the U.S. auto industry. Earlier this year, Tesla CEO Elon Musk told industry analysts Chinese EVs are so good that without trade barriers, “they will pretty much demolish most other car companies in the world.”

Company President Terry Woychowski, a former chief engineer on General Motors’ big pickup trucks, said the car is a “clarion call” for the U.S. auto industry, which is years behind China in designing low-cost EVs. Americans are still learning how to make cheaper batteries, Woychowski said. Ford is building a lithium iron phosphate battery factory, using technology from China’s CATL.

U.S. automakers don’t often design vehicles this way and incur excess engineering costs, Woychowski said. Hoses, for instance, have to meet longstanding requirements in combustion engines for strength and ability to carry fluid under high pressure, many of which aren’t needed for electric vehicles, he added.

Even with its minimalist design, the Seagull still has a quality feel. The doors close solidly. The gray synthetic leather seats have stitching that matches the body color, a feature usually found in more expensive cars. The Seagull “Flying Edition” tested by Caresoft has six air bags, rear disc brakes and electronic stability control.

BYD sells the Seagull, rebranded as the Dolphin Mini in some overseas markets, in four Latin American countries for about $21,000, twice what it costs at home. The higher price includes transportation costs, but also reflects the higher profits possible in less cutthroat markets than China.

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