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.

  • HappycamperNZ@lemmy.world
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    10 months ago

    Uh… yeah? China beats nearly everyone on price but you don’t go there for quality and durability.

    • Jode@midwest.social
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      10 months ago

      The American car companies haven’t exactly been stellar with regards to quality, reliability, and safety lately either.

    • MonsterMonster@lemmy.world
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      10 months ago

      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.

      • Mwalimu@baraza.africa
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        10 months ago

        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

        • chitak166@lemmy.world
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          10 months ago

          I wonder how this may reflect on Chinese / Western competitiveness.

          Sounds like it’s almost a 1:1 copy of what happened with the Brits.

          For whatever reason, English speakers are easily-duped into thinking non-English speakers can’t compete.

    • ABCDE@lemmy.world
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      10 months ago

      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.

    • tomatopathe@sh.itjust.works
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      10 months ago

      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.

      • pycorax@lemmy.world
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        10 months ago

        Samsung is slowly moving some production from China though. For instance, my phone is manufactured in Vietnam instead.

        • Sl00k@programming.dev
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          10 months ago

          That doesn’t say much about the build quality though as the reason companies are moving out of China is Chinas increased manufacturing costs.

    • IWantToFuckSpez@kbin.social
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      10 months ago

      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.

      • AngryCommieKender@lemmy.world
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        10 months ago

        Daewoo. Had a gf that owned a Daewoo. It was a car, lol. Only real problem was we had to drive an hour and a half to get the thing serviced.

    • gravitas_deficiency@sh.itjust.works
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      10 months ago

      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

      • Augustiner@lemmy.world
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        10 months ago

        Most carmakers get heavily subsidized. All the German ones for example. It’s a big industry and states like to keep their brands competitive.

    • NateNate60@lemmy.world
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      10 months ago

      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.