BYD – which adopts the English slogan “Build Your Dreams” – is the largest manufacturer of electric vehicles in China, the world’s largest automobile market.

The initial rapid sales growth of BYD and its industry peers in their domestic market was facilitated in part by generous subsidies from Beijing.

But the European Union said the heavy state support enjoyed by Chinese companies has led to unfair competition, with a European Union investigation finding that Beijing’s subsidies were undercutting local competitors.

The EU said on Tuesday it would impose additional tariffs of up to 35.3% on Chinese electric vehicles, a move described by trade chief Valdis Dombrovskis as “a defense of fair market practices.” and the European industrial base.

INTENSIFIED BATTLE

Beijing criticized the measures on Wednesday, saying it had filed a complaint with the World Trade Organization and pledging to “take all necessary measures to firmly protect the legitimate rights and interests of Chinese enterprises.”

Earlier this year, the United States and Canada increased tariffs on Chinese electric vehicles to 100%.

China targets car sales consisting mainly of electric and hybrid models by 2035.

Hopes of realizing those ambitions were boosted in July when such vehicles accounted for more than half of all domestic sales for the first time, according to the China Automobile Manufacturers Association.

Initially specializing in the design and production of batteries, BYD diversified into the automotive industry in 2003.

Its latest quarterly results come as China’s crowded electric vehicle sector is locked in a bitter price war that is weighing on profitability as smaller companies struggle to stay competitive.

BYD said in its first-half earnings report this year that it had “effectively coped with the challenges posed by intensifying industrial competition.”

As the struggle intensifies in its domestic market, BYD is accelerating its globalization drive, with plans to open factories in Hungary and Turkey.