this post was submitted on 07 Jan 2024
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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.

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[–] [email protected] 0 points 8 months ago (1 children)

Are these even street legal in the US? Our safety standards are obscene. Air bags alone cost 5k.

It's why Tata never released a vehicle here.

[–] [email protected] 0 points 8 months ago (3 children)

Another example of America costing loads of money for little to know benefit.

[–] [email protected] -3 points 8 months ago (1 children)

Also why all the new cars suck.

[–] [email protected] 0 points 8 months ago (1 children)

New cars suck because planned obscelensce has been catered to by regulations and industry.

Safety standards are not bad, they just don't have decent standards in America.

[–] [email protected] -1 points 8 months ago* (last edited 8 months ago)

If you want people to buy new cars every year wouldn't you make the new cars look different? More exiting or whatever? We used to have awesome fins on the back of cars now we just get a shiny grill. "planned obscelensce" doesn't force them to make cars that all look the same. That's safety regulations.

[–] [email protected] 2 points 8 months ago

this comment has "little to know"

[–] [email protected] 1 points 8 months ago (1 children)

Yeah! Airbags suck! Wait, what?

Clown take if I've ever seen one lol

[–] [email protected] -1 points 8 months ago (2 children)

No not the airbags, the safety standards being "obscene", cost prohibitive and not yield good results.

So if American standards are preventing additional competition it should be because they have a very high standard which should bare out in terms of road and pedestrian deaths and injuries. It does not. Therefore the "obscene" standards are another example of poor results to cost.

[–] [email protected] 0 points 8 months ago (1 children)

Sounds like what the Oceangate CEO said about industry safety requirements for submersibles.

[–] [email protected] -1 points 8 months ago (1 children)

I'm saying they're not fit for purpose, America has a shit ton of road and pedestrian deaths. The safety regulations don't do enough.

[–] [email protected] 1 points 8 months ago

Hey since you seem to be ignorant of old car safety hazards ive got a '78 Ford pinto to sell you.

But seriously modern American cars (or atleast the post 80s ones) are a shitton safer than their old counterparts. And this is coming from someone who loves old piece of shit cars (Id drive the Homer).

Modern American safety features to a point were paid in blood. Tuna canning in small cars is isnt nearly as common as it once was, and the pealing the smashed in head of the drive off of the stearing wheel isnt all that common anymore.

There are certainly some so called safety features that are laregly pointless IMO but my hatred of back up cams aside, survivability of car crashes have skyrocketed.

[–] [email protected] 0 points 8 months ago (1 children)

What a silly thing to say. On what basis have you decided they don’t yield good results?

[–] [email protected] 0 points 8 months ago (1 children)
[–] [email protected] 1 points 8 months ago (1 children)

Not really conclusive as there have been increases in speeding and drunk driving that cause total accident numbers to go up. A more relevant stat would be fatality or injury rates per accident.

[–] [email protected] -1 points 8 months ago (2 children)

You've changed your tune from it being silly to needing more granular data.

Pedestrian deaths are on the rise and decent safety regulations could impact speeding and drunk driving.

[–] [email protected] 0 points 8 months ago (1 children)

That's called "moving the goalpost" fallacy. :D

[–] [email protected] -1 points 8 months ago
[–] [email protected] 1 points 8 months ago (1 children)

I said you were silly because it was more polite than calling you stupid, and in neither case is it referring to the issue of traffic deaths.

And now you’ve changed your tune talking about pedestrians which has nothing to do with the topic.

[–] [email protected] -1 points 8 months ago

Car safety regs have nothing to do with pedestrian deaths? So cars with poor visibility due to design choices are in no way related to car safety or pedestrian deaths?

Cars having impact ready bumpers and lowered engine blocks that have a direct correlation with lower chances of death or serious injury in the event of a collision with a pedestrian or cyclist are completely unrelated to safety regulations?

[–] [email protected] 0 points 8 months ago (1 children)

This is why Americans hate China. It's legitimate competition for them.

[–] [email protected] -1 points 8 months ago* (last edited 8 months ago)

Proven an idiot in a single sentence. Good work, man.

[–] [email protected] 2 points 8 months ago (2 children)

Of course nobody can match BYD, they don’t just own the supply chain the Chinese government subsidizes every part in their supply chain. The Chinese government wants to crush foreign competitors. And before you say that Tesla gets subsidies, it’s no where near as extensive as the subsidies Chinese EV manufacturers get.

[–] [email protected] 1 points 8 months ago* (last edited 8 months ago)

China doesn't need to subsidize the entire supply chain because the reason Chinese EVs are so cheap is literally hyper-capitalism. China has had an immensely competitive EV market for years, and they're been getting into price wars without government intervention. That's forced innovation at a pace that Tesla cannot match alone because they have no need to compete at such a pace. Here's a list of national EV subsidies and their status:

  1. In 2022, the 12600RMB consumer incentive to buy a BEV vehicle was ended. This is rather similar to Biden's EV tax credit.

  2. China has waived the consumption tax for the EV market, which is a tax designed to target environmentally-unfriendly products. The consumption tax is commonly applied to automobiles, but they're being explicitly waived for the EV market for what is hopefully an obvious reason.

  3. Currently, the tax-free allowance for an EV (the portion of an EV purchase that is not charged VAT) is 30000RMB (@13% VAT, = 3900RMB). This subsidy is being reduced in 2025 and phased out entirely in 2027. This is also rather similar to Biden's EV tax credit.

  4. Costs of EV charging/battery switching on the grid are borne by the government because the government manages electricity on the supply-side, including finding producers and managing distribution. This is not unusual of crown corporations in other countries.

While there are provincial incentives for companies to set up shop in one province over another, they're smaller scale, not received support at the national level, and not unique to China (see: subsidies to Tesla for their production and to Amazon for their HQ2). The most unique element of China's subsidy regime is the elimination of excess consumption tax in the EV market, which has created a huge marginal advantage for developing EVs over developing ICE automobiles. Importantly, that subsidy is simply reducing the excess tax charged on automobile manufacturing over that charged on typical consumption.

[–] [email protected] 0 points 8 months ago (1 children)

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.

[–] [email protected] 1 points 8 months ago (1 children)

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.

[–] [email protected] -1 points 8 months ago

It's bad because it forces a monopoly. Once co.petition is out of the window, they will recoup with monopoly prices

[–] [email protected] 2 points 8 months ago (5 children)

Uh... yeah? China beats nearly everyone on price but you don't go there for quality and durability.

[–] [email protected] 1 points 8 months ago

As if Tesla was famous for its quality and durability either.

[–] [email protected] -1 points 8 months ago

So where would you go for that?

[–] [email protected] -1 points 8 months ago

Not to mention: I’ll eat my hat if the CCP isn’t providing some sort of subsidization, for no other reason than the fact that it’s a national pride thing for them

[–] [email protected] 1 points 8 months ago (1 children)

That view is unfortunately out of date. Many Chinese products are of equal or superior quality to their global counterparts. Think Lenovo laptops and OnePlus smartphones. Chinese stuff can be cheap and high quality.

[–] [email protected] 0 points 8 months ago* (last edited 8 months ago) (1 children)

Both Lenovo and OnePlus are garbage. Out of all the shitty companies and you go to those two for an example of quality?

[–] [email protected] -1 points 8 months ago

Sources or stfu

[–] [email protected] 1 points 8 months ago (1 children)

The American car companies haven't exactly been stellar with regards to quality, reliability, and safety lately either.

[–] [email protected] 1 points 8 months ago

My VW-built EV seems pretty high quality. China and USA aren't the only game in EVs.