EV companies have one big problem — countries that can't keep their policy straight, says top BYD exec

• Policy changes are slowing the global EV transition, a top BYD exec says.
• Countries that go "back and forth" on EV policy risk confusing manufacturers, Li said.
• When governments give a "very clear line," automakers can focus on execution, Li said.

The global EV transition has a policy problem, says BYD executive vice president Stella Li.

Li said in a panel session on EVs on the second day at Davos that governments keep changing the rules about EVs. The stop-start approach makes it harder for automakers to commit capital, plan product cycles, or build supply chains with confidence, even as competition across the EV markets in China, the US, and Europe heats up.

Li said that when countries go "back and forth" on their EV policy, it creates a pattern that "will confuse manufacturers."

In contrast, when governments give a "very clear line," automakers can focus on execution, Li said.

That inconsistency has real consequences, Michigan Gov. Gretchen Whitmer said on the same panel.

"The back and forth policies at the national level have made it more difficult for industry to throw all in and ramp up the way that some of the Chinese companies have been able to," she added.

Elaine Buckberg, former chief economist at General Motors, said on the panel that automakers typically plan vehicles five years before launch and expect to sell them for years afterward. Stable, long-term regulations are critical for companies expanding into EVs.

"Keeping those incentives stable, that's really powerful," she said. "That's a place where the US is really pulling back under the Trump administration."

China has the lead over the US on EVs

China has a clear lead over the US in electric vehicles, Li and two of her co-panelists said.

Li said consumer demand, rapidly improving technology, and China's dense charging network are accelerating adoption and making EVs a practical choice for everyday drivers.

In China, EVs are not only bringing a "sustainable future," but also bringing "innovation," Li said.

Industry leaders have been vocal about China's dominance in the global EV market.

Ford CEO Jim Farley said in an episode of The Verge's "Decoder" podcast in September that "the Chinese are the 700-pound gorilla in the EV industry."

"There's no real competition from Tesla, GM, or Ford with what we've seen from China. It is completely dominating the EV landscape globally and more and more outside of China," he added.

Farley said that China has "great innovation at a very low cost," and that companies have "huge subsidies" and are sponsored by their local governments.

China's government poured at least $230 billion into supporting domestic EV makers between 2009 and 2023, according to a 2024 report by the Center for Strategic and International Studies.

"There's no secret magic thing that you're like, 'Oh, aha, they did this.' But rather it's the compounding benefits of a lower cost of capital," said Rivian's CEO, RJ Scaringe, in an episode of the "Everything Electric" podcast published in September.