It ties with "... changes everything".
New Energy Vehicles (NEVs) in China
- Thread starter supercat
- Start date
It ties with "... changes everything".
Well, this is where the Chinese government can come in. If it wants to export a lot of cheap EVs abroad like the Wuling mini EV, it needs to help other ASEAN countries build up their EV infrastructure.
In another 15 years, the vast majority of higher end cars will be EVs, because China and EU will have very few ICE cars left. Just think about the ripple effect in terms of what automakers produce and such.
Not at all. Tesla won't be competitive in the Chinese market in a few years. It's smart driving program is a disaster.
Huawei is looking to be a major supplier of smart driving technology and electric drive train technology to all the manufacturers in China. It seeks to get the higher revenue part of business while the automakers in China just builds cars for them.
Unless BYD can develop its own smart driving technology, it will be dependent on other companies like Huawei and Baidu. That's a terrible place to be if you are BYD.
And even aside from that, BYD also wants to sell its smart driving and electric motor technology to other manufacturers. Huawei is clearly a major competitor to BYD in this area.
BYD is valued at over $1 trillion RMB. It has plenty of resources. BYD also has a chance to be the highest market cap company in the world. But BYD has to dominate its home market first. That means, it will not rely on Huawei or any of these tech companies in its smart driving technology. It might work with them in short term. But long term, it will take what it can get from them and develop something better.
Again, BYD wants to dominate everyone. it doesn't want to work with Huawei/SMIC/Huahong. That's why it's producing its own chips and developing its own smart driving. BYD always strives to do everything by itself. As Taylor Ogan said:
"BYD will use its own semiconductor company to make its autonomous driving chips. Factories to be erected by BYD’s own construction company. Raw materials & final product to be transported by BYD’s own electric trucks & forklifts. PPE by BYD’s own masks, of course."
You should be cheering more for BYD than any of these IC companies. BYD doesn't have any of their political baggage right now. It's exporting and giving China great press in other countries. Rather than only employing people in Pearl River Delta and areas around Shanghai, it's employing people across China with factories in all these 2nd/3rd tier cities. It's bringing high quality manufacturing jobs all across China. BYD employs more people across China than Huawei right now. And as it expands, it will be China's largest private employer (by far)
This is critically important and is why BYD should be supported if for no other reason.
All it takes is some form of sanctions on BYD, it will then start to behave "properly" by cooperating with other Chinese companies.
Huawei and zte used to be "enemies". Now they know their real enemies are foreign entities.
@henrik Bro that's the idea of Wang Chuanfu, their vertical integration strategy is the lesson learned from Huawei, They can't use Huawei product in fear of being sanction and lets be honest they're a target as most of successful Chinese tech company.
China's power battery output surges over 176 pct in H1
Xinhua | Updated: 2022-07-17 13:07
BEIJING -- China's output of power batteries surged 176.4 percent year on year to 206.4 gigawatts in the first half of the year, according to industry data.
In the January-June period, the country produced 123.2 GWh of lithium iron phosphate batteries, up 226.8 percent from a year ago, data from China Automotive Battery Innovation Alliance showed.
The output of ternary lithium batteries stood at 82.9 GWh, up 125 percent year on year, the data showed.
A total of 110.1 GWh of batteries were installed in China's electric vehicles during the period, up 109.8 percent year on year.
In June alone, the output of power batteries was 41.3 GWh, up 171.7 percent from last year.
There is basically nothing you can sanction away from BYD once they develop their own smart driving chip. As I said, BYD has this all figured out with vertical integration. Every other critical part is already done indigenously. Thankfully, you don't need the latest chips for EVs. 16 nm chips is sufficient and it won't alarm the US gov't.
They will probably announce US entry in either the LA auto show in November or CES next year. Due to tariffs, they are likely to announce plans to build EVs in North America. And possibly battery factories too. They already have the largest electric bus factory in America at its Lancaster location. That along with its Berkshire investors will give BYD some political protection in Washington. After all, EVs are not seen as a national security issue.
Another visual of how popular BYD is.
If you look at the current Chinese markets. BYD is attempting to compete with everyone. It's establishing itself as China's Toyota. With Denza and Starry sky brand, it's encroaching German luxury car makers and even Ferrari. Those are segments even Toyota doesn't compete in. So, I just don't see Tesla able to compete with that. I don't see the Germans able to compete with BYD given how quickly BYD moves. None of these Japanese/German automakers can move fast enough in lowering EV production cost let alone developing the software needed to do full smart driving.
So you are left with Chinese automakers. Both NIO and Xpeng have great products, but they are unable to raise production fast enough to compete with BYD. They also don't have the deep pockets for this.
So why is Huawei and Baidu going to be huge competitors? Well, they can work with existing players like Geely, Chery, Sokon, GWM and anyone else who are struggling to develop their own competitive electric motor or self driving. They are unlikely to want to take on most of their own manufacturing. They will use these existing players, who have vast amount of unused factory production space (for example, Geely has the ability to produce over 2 million cars, but sells less than 1 million). That allows them to quickly raise production without having to go through the high cost of getting permits, buying the land, building factories and hiring workers. And bam, you have a bunch of Huawei and Baidu cars around that will now have advanced self driving.
That's why BYD is dead serious about developing its own chips and self driving. It doesn't want to be controlled or even rely on anyone else. It is investing heavily here.
I predict in the next 10 years, a lot of the legacy JV manufacturers in China like SAIC, FAW, Dongfeng, Changan are going to have a hard time as the foreign brand sales keep plunging. They will either have their factories bought out by BYD or have JVs to build cars with BYD electric drive/smart driving technology or with Huawei and Baidu.
This imo is a terrible move by CATL. It's one thing for an American company to build a factory right across the border to Texas to supply America. It's another thing for a Chinese company too. If I was advising CATL, I'd slap them upside down right now. Because they clearly have no idea the political situation in America and views toward shipping of jobs across the Southern border.
And even aside from that, they will be dealing in a country that has no control of its northern half. Yes, I've been to Mexico several times. It's one thing for American companies that have had years of dealing with producing things in Mexico. Quite another thing for a Chinese company that has never dealt with the Mexican cartels. Yes, they might save a little on labor and delivery cost, but just wait when the Republicans decide they want to close the southern border right before the midterms.