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Uber has Inked an EV Agreement with BYD, a Chinese Competitor to Tesla

By Consultants Review Team Thursday, 01 August 2024

Uber has announced a contract to add 100,000 electric vehicles (EV) manufactured by China's BYD to the ride-hailing giant's worldwide fleet. The two firms said they would provide incentives to drivers who transition to electric vehicles, such as savings on maintenance, charging, financing, and leasing.

The multi-year arrangement will begin in Europe and Latin America before expanding to the Middle East, Canada, Australia, and New Zealand. The news comes as EV sales worldwide have stalled, and Chinese automakers face increased import tariffs in countries such as the United States and the European Union.

"The companies aim to bring down the total cost of EV ownership for Uber drivers, accelerating the uptake of EVs on the Uber platform globally, and introducing millions of riders to greener rides," according to a joint statement.

They also stated that they will try to incorporate BYD's self-driving technology into Uber's platform.

Earlier this year, Uber announced a collaboration with Tesla to boost EV adoption among its drivers in the United States, as well as plans to create a purpose-built EV with South Korean automaker Kia.

The United States, the European Union, and other key markets have lately raised tariffs on Chinese-made EVs in an effort to defend their auto sectors.

The move has pushed BYD and other Chinese EV manufacturers to extend their manufacturing operations outside of China. In July, BYD signed a USD 1 billion agreement to establish a manufacturing factory in Turkey.

The new facility would be capable of producing up to 150,000 automobiles each year, according to Turkish state news agency Anadolu. The plant is planned to produce around 5,000 employment and begin production by the end of 2026.

Last month, BYD also established its first EV facility in Southeast Asia, in Thailand. BYD stated that the factory will have an annual capacity of 150,000 vehicles and is expected to create 10,000 jobs.

BYD stated at the end of last year that it would develop a manufacturing factory in Hungary, an EU member state. It will be the company's first passenger automobile manufacturing in Europe, and it is projected to employ thousands of people.

The corporation has also stated that it intends to develop a manufacturing factory in Mexico. BYD, backed by legendary US investor Warren Buffett, is the world's second-largest EV manufacturer, trailing only Elon Musk's Tesla.

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