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.
Subsidiaries enabling a more rapid transition away from fossil fuels by lowering the cost to consumers is a great thing, and what’s even more impressive is they’re also using subsidized projects to install high-speed or low cost rail lines all over the world.
It’s great that there’s a country working so hard to help is turn the corner on climate change especially as they’re focusing on making life better for the working classes. The country has lots of problems but we all do, they’re also doing great things which I think we could learn a lot from them.
A lot of people are saying this is bad, but for once, I’m on China’s side here.
The faster we pivot away from fossil fuels, the better, by any means necessary.
It’s bad because it forces a monopoly. Once co.petition is out of the window, they will recoup with monopoly prices
China has the most competitive EV market on the planet.