BYD avoided the unfavorable deal proposed, and that is good.
I meant nobody on the forum at least. The point being about some people here question risk of foriegn market, chiefly US and India, and showed concern on this forum. That was the reason I mentioned that.
Why does it matter what people on this forum think? The Chinese EV community at large that follow this stuff would know a lot more on Chinese EVs. People on this forum are the most nationalist you are likely to find who are anti-US/India.
I think it is more fair to compare the revenue of the car market, due to EU buy higher end cars, in which EU should be around 18x the size.
You don't have to agree with him, and he is not infallible, but he as the president of China have some credibility to say the least. He has access lots of information regard geopolitical risks and Chinese government policies. He must have seen the growth of industry by now even if the government underestimated previously. Nevertheless, he still urges caution. It would be foolish to disregard his assessment even if he is not infallible.
lol, so you have no argument on the CATL deal except Xi said to be careful.
Assuming they made money unlike Foxccon of course. And assuming they did make money, would that money be better spent elsewhere?
What do you think they've been doing for 16 years in India? They've been selling thousands of buses and commercial vehicles in the past year in India. How can they not be making money. You can look up Olectra twitter account. There is a lot of bus sales there. Here is an example of 400 eTruck sales
There are risks to every large market and India is a growing market that you have to decide on the risks. In all these markets that BYD enters, it's investing enormous amount of money to build local sales network. All that money are wasted if BYD at some pt decides their cars are not getting enough orders.
Yet, people are only concerned when you have a plant in India & end up having to sell it for pennies to Indian company.
Of course, it's bad when you have to do that, but it's bad anytime you have to pull out of any market for commercial or political reasons.
Xi's warning is as clear as someone could get from a Chinese politician. In fact, as far as I remember this is one of the very few times (maybe the first?, sorry not good memory) I have heard such a clear cut direct warning from him on a specific company.
If I was you, I wouldnt take this lightly. He has access to far more information than your average Joe or BYD's CEO. What do you think that Wang Yi talks about with his Indian counterpart every once in a while? Do you think that behind the doors there aren't frank discussions between China and India?
So if Xi urges caution, you better listen up because it means that the foreign affairs apparatus has warned him about it.
This is not an economic issue, its geopolitics/foreign affairs
Yes, Chinese govt needs to be protecting the interests of its own companies.
But again, the warning is for CATL in America. It's not for BYD in India. It's not good to confuse 2 issues.
It's also important that when we scream about risks going to India, we also think about risks going to other markets. Not every overseas market are Thailand or Brazil
BYD just needs to be careful and establish derisking safeguard when dealing with US given how unhinge and devious the US administrations have become.
BYD is not entering US market with PVs. That's CATL. BYD has a successful commercial vehicle & ESS operation that it is wise to keep silent about.
The only PV market that I would caution BYD to no go into is US, because that will likely trigger wider sanctions and hurt its existing profitable operation in America
