Friday, September 29, 2023

Why Tesla (and other brands) should worry about BYD and the rest of the Chinese manufacturers

There are many voices warning against this in Europe and North America the strength with which Chinese brands come onto the market with their electric cars and above all, the strength with which they will expand in the coming years.

“We are here to stay”, was the message that the Chinese manufacturers conveyed at the last IAA in Munich, where they began to build muscle. Europe is already on the hook, to the point where they already are Investigating Chinese Electric Vehicle Subsidies and study new tariffs on imports.

Now the message from the Chinese manufacturers is being reinforced from the USA. The Wall Street analysts They send a message that should be heard as well Tesla like the rest of the big western brands that use brand BYD as a reference and one of his latest developments as an example.

Accordingly UBS analysts one of the largest asset managers in the world, The Chinese company could be “the closest thing to a real Tesla competitor”. The electric sedan Seal WORLD It could be compared to the Tesla Model 3 and would be an “excellent alternative” to the Elon Musk-branded car.

“The BYD seal is a good example of technological advantages and cost optimization Chinese electric cars. The first thing that stands out on Wall Street is the price of the BYD seal, which is “between 10 and 20% lower”. It refers specifically to the Chinese market, as in Europe the tables are different (for now).

More interior space, rotating central screen in the cabin, 5G connectivity…are some of the highlights of the Chinese sedan, which, according to data analyzed by UBS, offers worse acceleration, top speed and charging speed than the Tesla Model 3. The BYD Seal also does not contribute more than the Tesla when it comes to autonomous driving technology but this comes at a price Level 2 advanced driver assistance system and outsourcing this technology rather than developing it internally.

“Chinese automakers currently have systematic cost advantages in producing electric vehicles over traditional American and European brands, while offering broader product lines than Tesla and covering more segments,” they warn.

Speaking of which Energy efficiency UBS assures that both cars are equivalent. The Possibility to integrate the battery – in a lower position – also in this case in the Chinese car, an advantage that translates into better interior space, a lower external profile and better aerodynamic resistance, as well as lower manufacturing costs.

And it is precisely the latter that Wall Street highlights and extends to many other Chinese manufacturers such as Geely, XPeng or Li Auto: its price competitiveness thanks to a “vertical integration of processes, corresponding specifications” and the high capacity for large scale manufacturing dominates the battery supply chain.

Electric car parts suppliers are welcoming Chinese brands with open arms

In the long term this means: lower production costs to achieve greater volume and accelerate the development cycle of its electric cars. “We believe Chinese brands’ market share gains over foreign brands will be structural and continuous. Looking towards the era of electric vehicles, The price difference between foreign and Chinese brands is essentially small, but on the Chinese side the volume could be even higher».

The growth of China’s electric car market is now starting to expand beyond its borders and is exporting at an ever faster pace. And be careful, they warn from Wall Street: It’s not unreasonable to think that Chinese electric cars, Sooner or later they will be successful in the United States in the near future.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news