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.

  • Mwalimu@baraza.africa
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    11 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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      11 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.