Visitors watch a vehicle of Song PLUS by Chinese NEV manufacturer BYD during the 2024 Beijing International Automotive Exhibition in Beijing, capital of China, May 4, 2024. The exhibition closed on Saturday. Photo: Xinhua

BYD, China's leading electric vehicle (EV) maker, and Uber unveiled a multi-year strategic partnership on Wednesday, planning to integrate 100,000 new BYD EVs into the US ride-hailing giant's global fleet and collaborate on future BYD vehicles with autonomous capabilities, according to an announcement released by BYD on Thursday.

This landmark agreement will gradually be phased in across Uber's key global markets such as Europe and Latin America, and expand to the Middle East, Canada, Australia and New Zealand. It's expected to reduce overall EV ownership costs for Uber drivers, accelerating EV adoption on the Uber platform worldwide, according to the announcement.

BYD's partnership with Uber, the largest global agreement of its kind, comes amid the company's efforts to enhance its global market presence and tackle Western tariff hikes on Chinese-made EVs. The announcement did not refer to any plans to deploy vehicles in the US market.

Experts said that the high-profile agreement underscores the positive momentum and vast potential in economic cooperation between the world's two largest economies, particularly in the new-energy sector, and acts as a strong rebuttal to the US government's attempts to "decouple" from China through political coercion.

They also warned that intensifying US' crackdowns on Chinese EVs will isolate it from the new-energy sector's advancement and the global green transition, undermining its industrial competitiveness and disrupting its global strategy.

In May, the US announced plans to raise tariffs on $18 billion worth of Chinese imports, including EVs, on top of existing tariffs under Section 301. However, the implementation of these tariffs, which was scheduled to take effect on Thursday, has been postponed for at least two weeks, according to media reports.

Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times on Thursday that companies will inevitably account for protectionist pressures in various markets in setting their global business strategies.

"The high level of political and protectionist risks in the US market are the main reasons why the Uber-BYD partnership has to exclude it," Li said.

According to the announcement, the two companies may also offer discounts on charging, vehicle maintenance and insurance, as well as financing and leasing options, tailored to what is most effective for drivers in each market, in a bid to support drivers transitioning to EVs.

The two companies will also collaborate on future BYD autonomous-capable vehicles for the Uber platform, a sign analysts see as both sides' joint entry into the promising global robotaxi market and BYD's commitment to advancing its proprietary autonomous driving technology.

China's Ministry of Industry and Information Technology recently included BYD in the first batch of enterprises approved for intelligent connected vehicles and road trials in China, acknowledging its advancements and technical prowess in intelligent driving technology. 

"Uber and BYD share a commitment to innovate toward a cleaner, greener world, and I am excited to work together toward that future," said Wang Chuanfu, chairman and president of BYD, as cited in the announcement.

Dara Khosrowshahi, CEO of Uber, highlighted the cooperation as the largest global agreement of its kind, and the benefits this partnership will deliver for drivers, riders and cities. He said that the deepened collaboration between Uber and BYD "aimed to enhance user experience and create social value." 

Li emphasized that BYD's partnership with Uber showcased the vast commercial cooperation potential in emerging fields, where China is leading.

However, he also cautioned that the stance of some Western countries on sustainable development is questionable, as they are politicizing green growth issues through unilateral sanctions, which will harm themselves and global industrial development.

BYD's international expansion strategy has proven effective in recent years. Its EVs are present in more than 80 countries and regions. In the first half of this year, BYD's overseas sales surpassed 203,000 units, up 173.8 percent year-on-year, maintaining a robust growth momentum.