Chinese electric vehicle (EV) giant BYD is shifting its focus to expanding in Australia and south east Asia, despite reports that the United States may ban Chinese-made software and hardware in Chinese smart cars due to national security concerns.
Reports suggest the US Commerce Department may soon announce a ban on Chinese software and hardware in connected and autonomous vehicles, citing fears that Chinese companies could manipulate internet-connected vehicles and navigation systems. This move is seen as a part of broader US efforts to protect its market from foreign competition, especially from Chinese companies like BYD, which briefly overtook Tesla as the world’s largest EV manufacturer in late 2023.
BYD has experienced significant growth globally, including in Australia, where it is the second-largest EV provider behind Tesla. Unlike many traditional automakers that rely on third-party software, BYD develops its own in-house technology, setting it apart from competitors such as General Motors and BMW, which use platforms like Google’s Android Automotive.
The Biden administration has voiced concerns about Chinese companies potentially collecting sensitive data from US drivers and infrastructure. The proposed regulations would follow similar restrictions imposed on Chinese electronics giant Huawei, prohibiting the import and sale of Chinese vehicles equipped with certain communication and automated driving technologies.
Nearly all modern vehicles on Australian roads are “connected,” meaning they can share data with other devices via onboard network hardware. The proposed ban in the US would mean Australia may also follow a similar path. This was seen before with Huawei, where US sanctions led to Australia following suit, prioritising national security over technological adoption. As EVs become more prevalent, the conversation around data security will only intensify, potentially influencing Australia’s regulatory stance on connected vehicles and foreign technologies.
The potential ban reflects growing concerns among international lawmakers about data privacy and security risks posed by the rise of Chinese influence in the automotive sector, compounded by escalating geopolitical tensions.
Despite any potential regulatory hurdles in the future, BYD is thriving in Australia having already sold 13,355 EVs in 2024 — a 67% increase from the same period last year. With the rise of connected vehicles, cybersecurity has become increasingly important, highlighting the need for robust protection measures. Services like Gridware’s Incident Response and Managed Security can help companies safeguard against potential cyber threats, ensuring the safety and security of advanced automotive technologies as they continue to expand in new markets.
