The world’s largest electric vehicle manufacturer, China’s BYD, is holding 13,000 more cars in stock in Australia than it needs for sales. What’s the scam?
The scam is that BYD can take advantage of the Australian Carbon Credit scheme, which accounts for ACUs on imports and not on sales. By importing many more cars than they need, BYD can sell carbon credits to other manufacturers who are not meeting targets for low-emission vehicle sales.
The AFR reports on data from the Federal Chamber of Motive Industries (FCAI) showing that in the first nine months of this year, BYD imported 50,918 vehicles and sold only 37,923. In contrast, Tesla imported 22,355 and sold 22,653, reflecting the norm for all the other major manufacturers.
Modern car distribution is very much a just-in-time business, as many who have waited months for their new car to be delivered can attest to.
The discrepancy between imports and sales may, of course, be attributable to a slowdown in sales, but BYD says ($) it is importing “to cater to an exploding demand for its vehicles.”
By selling credits to other manufacturers not meeting their targets according to the government’s New Vehicle Efficiency Standard, they can make up to $7,050 per vehicle imported.
At best, a zero-sum game for the planet.
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Kim Wingerei is a businessman turned writer and commentator. He is passionate about free speech, human rights, democracy and the politics of change. Originally from Norway, Kim has lived in Australia for 30 years. Author of ‘Why Democracy is Broken – A Blueprint for Change’.