supercat
Colonel
Here is how BYD's vehicle carrier with a capacity of 7,000 cars looks like:
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New Energy Vehicles (NEVs) in China
- Thread starter supercat
- Start date
Things are not stopping at BYD plants. this is from around New Years. Just a whole lot of cars waiting to be delivered at Changzhou with another 2 to 3 months backlog.
I wonder what their operating margin is. Tesla is way above the auto industry average.
Hmm not after their recent price cut. Byd auto gross margin was in the low 20s.
I guess China EV industry will probably evolve from OEM model to JDM model and eventually even to ODM model. If that happened, that would spell doom-and-gloom of global auto industry as we know it today. We all know what has happened last time when certain "high tech" industries traversed through similar transitions. With that, I would not rule out Lei Jun et al.
Few stories for today, but this is a good one if you want to know the main MCU players in china. It actually misses a few, especially risc-v MCU players. A lot of these are fabless design shops getting their chips produced at smic and huahong
I think Huawei's and Xiaomi's move into EVs should be seen the same way when Samsung moved into smartphones. Lots of younger folks think Samsung got their start in smartphones and then branched out to other areas, which is of course absurd. But it's an impressive feat of Samsung to shift from "old tech" to "new tech" so successfully.
We're entering a phase in Chinese development where you get these mega-conglomerates that can compete at a world-class level in many different sectors. Korea got Samsung and to a lesser extent LG with a much smaller population. I suspect China should be able to get at least 10 of these megacompanies.
So, while I understand that people are skeptical about Xiaomi, if you think about it, it's not so crazy. Cars are becoming much more digital, which is the core strength of both Huawei and Xiaomi. Both are also used to running large manufacturing operations. The one key deficit is batteries where BYD clearly has a "strategic moat", but CATL is doing well. The big unknown is if CATL itself will throw its hat into the ring and also try to build an EV. That would probably be foolish since it would give its customers a disincentive to select them over other battery suppliers, since they wouldn't be also direct competitors. For that reason, I don't think we'll see a CATL EV but who knows.
Still, while the EV market is growing like crazy, China's overall car industry is shrinking. So it's cannibilising sales. So while Xiaomi makes sense as a new EV player, I wonder if it's simply too late to get into the game now. In life, timing is (almost) everything. By the time they enter, I suspect most of the "easy growth" will be a thing of the past and the established players will be much more ruthless & refined. Huawei just got in by the skin of their teeth.
We're entering a phase in Chinese development where you get these mega-conglomerates that can compete at a world-class level in many different sectors. Korea got Samsung and to a lesser extent LG with a much smaller population. I suspect China should be able to get at least 10 of these megacompanies.
So, while I understand that people are skeptical about Xiaomi, if you think about it, it's not so crazy. Cars are becoming much more digital, which is the core strength of both Huawei and Xiaomi. Both are also used to running large manufacturing operations. The one key deficit is batteries where BYD clearly has a "strategic moat", but CATL is doing well. The big unknown is if CATL itself will throw its hat into the ring and also try to build an EV. That would probably be foolish since it would give its customers a disincentive to select them over other battery suppliers, since they wouldn't be also direct competitors. For that reason, I don't think we'll see a CATL EV but who knows.
Still, while the EV market is growing like crazy, China's overall car industry is shrinking. So it's cannibilising sales. So while Xiaomi makes sense as a new EV player, I wonder if it's simply too late to get into the game now. In life, timing is (almost) everything. By the time they enter, I suspect most of the "easy growth" will be a thing of the past and the established players will be much more ruthless & refined. Huawei just got in by the skin of their teeth.
Don't compare Xiaomi with Huawei, they are two totally different types of companies. Huawei does R&D and owns patents, Xiaomi just manufacturers/contracts out consumer electronics. Huawei is the pride of China, Xiaomi is an Apple copycat.