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submitted 6 months ago by [email protected] to c/[email protected]

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.

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[-] [email protected] 57 points 6 months ago

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

[-] gravitas_deficiency 15 points 6 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

[-] [email protected] 26 points 6 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.

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this post was submitted on 07 Jan 2024
193 points (91.4% liked)

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