When China’s BYD recently overtook Elon Musk’s Tesla as the global leader in sales of electric vehicles, casual observers of the auto industry might have been surprised.
But what’s caught other carmakers around the world off-guard is something else about BYD, which is backed by Warren Buffett’s Berkshire Hathaway: its low prices.
“No one can match BYD on price. Period,” Michael Dunne, CEO of Asia-focused car consultancy Dunne Insights, told the Financial Times. “Boardrooms in America, Europe, Korea and Japan are in a state of shock.”
BYD can keeps its costs low in part because it owns the entire supply chain of its EV batteries, from the raw materials to the finished battery packs. That matters because a battery accounts for about 40% of a new electric vehicle’s price.
Uh… yeah? China beats nearly everyone on price but you don’t go there for quality and durability.
You gotta be a special kind of innocent to think Americans make quality automobiles.
The BYD cars they sell in the West are pretty decently build. I’d be more worried about the aftersales services. Chinese electronics companies always have shitty customer service. Like Lenovo and Huawei. And since a car always needs some repairs during its lifetime I will never buy an EV from a Chinese brand unless they have proven to have good aftersales service.
That’s what the British car industry said in the 60s and 70s about Japanese cars. Everyone bad mouthed anything made in Japan as being poor quality.
The Japanese succeeded through good products and their domestic rivals (in Britain) being arrogant, xenophobic and letting standards slide thinking they were great and couldn’t be beaten.
I’ve a Japanese Honda CRV (ironically built in UK) and a Chinese built MG5 EV. The EV is best built car I’ve owned in 35 years.
Many established car brands are going to disappear Tesla, I believe, being one.
I once read that the failure of British industrial policy to engage labour as a long term competitive edge instead of a dispensable short term concern saw Germany overtake British car makers. Germany dealt with labour strikes more comprehensively by engaging labour in policy structures. Like including Labour representatives in boardrooms.
I wonder how this may reflect on Chinese / Western competitiveness.
Found the piece: https://www.bbc.com/news/magazine-23406467
Your iPhone / Samsung is manufactured there. So no, that’s a bad take. You get what you pay for, and good quality is still cheaper than made elsewhere.
Samsung is slowly moving some production from China though. For instance, my phone is manufactured in Vietnam instead.
Oh, I find that even more hilarious. But that’s a Musk issue, not a place of manufacturing.
Actually, that’s also a place of manufacturing issue. Apparently teslas made in China are higher quality than teslas made in the US.
Eg. https://insideevs.com/news/381527/chinese-tesla-model-3-better-than-american/
Not to mention: I’ll eat my hat if the CCP isn’t providing some sort of subsidization, for no other reason than the fact that it’s a national pride thing for them
That view is unfortunately out of date. Many Chinese products are of equal or superior quality to their global counterparts. Think Lenovo laptops and OnePlus smartphones. Chinese stuff can be cheap and high quality.
In my own experience trying the waters for a business importing and selling LED Light Bulbs from China, they’re a mix of little crappy companies and large more well established ones and the larger ones are perfectly capable of designing and making good products but due to the market pressure for “make it as cheap as possible” end up mainly cutting down on component quality and using cheaper designs to make it cheaper.
Sure, the tiny companies are generally crap and the local culture (at least in Electronics, and at the time which was a decade ago) was to expect things to be cheap and break down often, but the larger companies are professional and can actually make quality products, its just that they generally are very weak in branding so can’t really get people to pay them for quality, hence end up either mainly competing on price or working as suppliers for non-Chinese companies which are little more than Brand-management outfits (which is pretty what all big name Brands in the West are nowadays - managers of one or more famous brands, not creators of superior products).
I’ve heard the exact same thing before: Chinese manufacturers will build to whatever quality you pay for, but almost everyone just asks for the absolute cheapest. The profit margins on the absolute cheapest quality are better than competing with other countries who can also produce higher quality goods.
Both Lenovo and OnePlus are garbage. Out of all the shitty companies and you go to those two for an example of quality?
Lol Lenovo laptops are cheap shit and One plus make the single worst phones I’ve ever seen.
That’s a pretty unfortunate viewpoint. At least in the corporate world, Lenovo laptops have a decent reputation for reliability (read: last long enough to where the replacement cycle is economical). Where I last worked IT, the lifespan of a Lenovo laptop was four years. That doesn’t mean that they break after four years, but just that we recycle and replace them with a new computer after that. That seems to be average for a corporate laptop.
Calling them “cheap shit” means you’re either uninformed and unfamiliar or you hold your standards far higher than the average computer buyer.
Yeah but lots more Chinese stuff is cheap shiny trash. If there’s a way to lie and cut a corner they’ll ,do it…not that America would be any different but they dont make anything here anymore.
That’s true but these cars aren’t. There are consumer protections in China. They just tend to be a lot less noticeable.
Then it’s got to be what the person below said: beating the hell out of their workers, poor conditions and benefits, stuff like that.
One of the reasons these commodities can get so cheap is because the true cost is obfuscated through the vicious exploitation of labor at every step of the chain.
We may not have paid the full cost of the product, but those who were directly involved in their fabrication certainly did.
They produce a lot of quality and durable products in China. Apple and Tesla are both producing there, as do many thousands of other companies.
The American car companies haven’t exactly been stellar with regards to quality, reliability, and safety lately either.
