China's EV Price War
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- Опубликовано: 16 мар 2024
- Description: China says it will take pragmatic measures to support the growth of the new-energy vehicle industry. The call comes as domestic EV makers gear up to report their latest quarterly earnings amid an intensifying price war. Bloomberg Asia transport reporter Linda Lew and HSBC Qianhai Securities' Yuqian Ding look at the speed bumps ahead.
Legacy auto makers and the US and EU is now demonizing China EVs because they can't compete.😂
true
jealous KUMAAR@@shamkumar3420
what is the population in china?
True
Obviously, because China can produce batteries and EVs more cheaply (cheaper labor and subsidies).
As customers, these EV 🚗are expecting to sell IN Aussie. Coz more competitors mean more choices, and more Chinense EVs means cheaper cars🤑 for common people, 😄so why not?
Aussies aren't fussed about it because they don't have a domestic auto industry to protect. The ones that do, ie: US, Germany, Japan, SK, France and Italy are freaking out because they can't compete with the Chinese
Bring it on. I’m sick of being ripped off by legacy car makers. We’re paying premium for outdated junk.
@@kevinlin4895 I find it a bit annoying to see Aussies shilling or the CCP.
@@tooltalk are you equally annoyed that they've been obviously shilling for the US government, the most murderous and evil government in the last century?
Chinese subsidies have also been significantly received by American companies, including Tesla, indicating that they are not exclusively aimed at Chinese vehicle manufacturer.
When Mary Barra says it not sustainable @1.18, she means it's not sustanable for GM motors.
China's EVs are the result of 20 years of work and auto industrial policies. The two key factors driving the Chinese government EV effort were (1) to solve the air pollution problem in Chinese cities by ICE vehicles (2)to overtake western, Japanese and Korean car manufacturers and dominate the global auto industry. It is interesting to note that the policies put into place to create the Chinese EV industry were done by a Chinese born ex-Audi executive in the leading edge auto engineering area Wan Gang. He went back to China and became the Minister of Science and Technology in 2000. He is known as the father of EVs in China. Chinese EV success is not an overnight one. It took China 20 years to be what it is today.
In fact, during the development of photovoltaic industry in China, hundreds of enterprises have closed down.
However, the surviving enterprises are all strong, and they completely dominate the global market.
I firmly believe that the EV industry will repeat the same story.
"Free competition, survival of the fittest" was taught to China by the west, but it is obvious that the west is increasingly afraid of free competition.
What success? Who is making money?
@@tubelilouswho said:China EV War,with who?
Dude this is chinese companies trying to kill themselves to have a monopoly in the chinese market.
It is not about global markets. And globally EVs are not good. They cannot operate in most of the world due to poor infrastructure.
@@tubelilousus chinese EV consumers. 😂
haaaah, even lower price in china means domestically subsidization? "china ev" sounds like all made from one company. Do you remember a word "competition"? Do you know how crazily competitive that the car industry in china is? The only way to survive is to reduce the cost and raising more capitals. tons of losers from this competitive domestic market quit.
Domestically "subsidization", and exporting with higher price to protect oversea competitors?
Many chinese car companies failed in the past 10 years,that's why those surviving companies are so strong now...
Because you have no technological innovation in China's electric vehicles, you can only compete with low prices
>> Do you know how crazily competitive that the car industry in china is
@@g103484947 : >> Domestically "subsidization", and exporting with higher price to protect oversea competitors?
The same "Price Cuts" happened in the Solar Panels business in China before . It will last between 5 - 10 years and
this will benefit the consumers in the long term . EV Cars will become much cheaper in the years to come .
Most importantly, these are energy industries that tend to compete on the supply side - people compete on cost and quality (not brand power or marketing). When there is more competition in this field, there is more incentive and benefit for companies to invest in technology development.
It's a powerful positive cycle.
In yrs to come this will be remembered as CHINA SAVED THE WORLD !
It seems like BYD and other Chinese EVs are presenting strong competition to Tesla and European electric vehicle manufacturers. The landscape appears to be shifting, potentially signaling challenging times ahead for Tesla and its European counterparts. Good luck Tesla and EU evs.
Doubt it
Electric cars require a lot of infrastructure, so realistically they are no competition to ICE in the global market.
Regardin Europe and US there are too many tariffa on China to have Chinese cars be worthwhile.
The current price war is targeting the traditional ICE cars. BYD announced directly ‘electric is cheaper than ICE’ in the advertisements.
@@vrealzhou in china
@@Archeaon你要不也看看中国内燃机燃油车出口和在海外投资建厂以及扩张？😂
Funny， Actually Export chinese EV car price is at least higher 30% than that in china.
More funny, the price of made-in-China VW id6 export to Germany is 130% higher than in China.
30% more is just another $3000-4000 bucks. Chinese EVs are selling as low as around $10000-$14000 domestically. Thats cheaper than anything on the market here in LA even with tariffs and taxes.
A basic logic is:
Only products with strong competitiveness will be sanctioned. Products with poor competitiveness will disappear automatically even if they are not sanctioned.
The fear of China EV in the West just proves the excellence of China EV.
id3在中国卖11万人民币 约1.4万欧元不到。 在欧州据说要3.5万欧元？
@@user-rr2ke1pp6p就是不然你以为他们为什么禁止代理商从中国进口卖到德国😂
I have a Xpeng G6 755km range(wltd is 620ish)... fast quiet smooth, heated seats/steering wheel, preheat heat/cool car from phone a minute later is all warm/cool a must need in winter/summer, self park/drive, phone control... and I think your Tesla lacks: surround smart voice command(no need to say hi rear passenger say open window his window opens... and wifi.
drove 5000km cost was 1 tank of gas n minus endless maintenance costs..... never going back to ice
Cannot Compete. BYD builds Factories in Salvador Bahia Brazil. EV Car Production for Brazil in Bahia. Work for 10.000 employees.👍❤️☀️☀️☀️
Why Europe and USA afraid of BYD. Let the new guy come lets see his work. I appreciate new companies. Dont be a pussy. Compete like a champ?
once the consolidation in EV sector is over, there will be fewer champions, and those champs will be the strongest
No, once consolidation AND subsidies are over will we know which ones can stand on their own two feet.
@@pablosskates7067 If I'm not wrong, Chinese gov already pulled out the subsidies, that's why there is price war going on right now.
Subsidies were stopped last year. Instead, some local governments subsidized the sales of their products in order to preserve the employment of traditional fuel vehicle companies. For example, Citroën's factory in Wuhan, China, received subsidies.
I think investors care about profits and margins. Who cares who is the strongest and who knows in 10 years whether cars are still on wheels and driven by human. The problem as investors are not interested in heavy capital spending and low margin business. Everyone is after AI and Nvidia as it is high margin and real high hurdle to enter.
@@godzillamothra5983 ok great. Let the show begin!!
Frankly, I don't think the most important question has been asked: how much of that price war is drawing on margin reductions, and how much is being fueled by actual - and permanent - cost reductions.
I mean, look at the price curve for Lithium batteries since the 90s and you will see that battery prices have been consistently falling - and falling fast - for the last few decades; with the battery still being the most expensive part of an EV, any reduction in battery prices means a good reduction in EV production costs And that doesn't even take into account how LFP batteries are cheaper, and how Sodium batteries are even cheaper still. There's also the learning curve, where the more you make something, the cheaper you can make it - and China is now making EVs by the millions. The new version of the BYD platform, which was mentioned, is as much about reducing production costs as it's about increasing capabilities.
To put it another way, I suspect most of the "price war" is in truth the natural cost reduction as the market matures. And any company or country that misinterprets it as predatory, but temporary, pricing in order to quickly grab market share is in for a rude awakening.
You are probably right
Price wars are good for consumers. We used to say that in America.. but we called it competition. But monopolies won at the end so we now call it price wars.
US and EU will need to increase tariffs on these China EVs by 50-100% to have any chance of having a domestic EV industry.
That's exactly what some like Rubio are advocating for.. but you're shooting yourself in the foot long term with protectionism
To copy BBC or CNN: but at what cost?
China is the largest sales market for American and European automotive companies.
Wonder Why, why USA and EU consumers buying EXPENSIVE EV when others buying cheap. Probably they are Dumb and Stupid. Guess so.
what's the topic? This is a domestic price war in China. It has nothing to do with Europe and the United States. Europe should continue to charge high prices for electric vehicles.
⚰️R. I. P. Legacy ICE automakers, the next 2 to 5 years ‼️
NIO founder William Li comments are why NIO will dominate in the future. His insights into what will improve the industry and improve the future are amazing. Driverless technology will lead to zero accidents and auto insurance companies are over soon. He realized nobody is buying a vehicle that won’t last 15yrs. NIO will have vehicles with a million mile lifespan!🐉🚀🌔🤑💰💰
GO NIO !
Ms. Ding said "We are restricted on Geely", what does that mean? HSBC knows more on Geely and won't tell because of investment strategy?
China is doing the right thing when it comes to green transition tbh.
you need to have excess capacity before you can export
Restricted about geeli🤫
Tesla started the price war 2 years ago. Lowering ev prices will increase the affordability, benefits us common people.
oh shina lets see BYD cars on the used car market, that will tell you the true value of the car brand.
Apple?! I thought apple is making the exactly opposite conclusion and NOT get into self-driving AI.
If an apple car was created it would - like most apple products, be well-designed but also the most expensive car around. The car industry is too competitive to make the type of excess profits apple is used to making.
EVs were once highly priced. That's a huge hurdle to overcome. Now the time has come that EVs are cheaper and affordable even compared to gas cars.
Need facelift like tesla model 3, juniper model y etc now.
Up 13 % Friday..FSR .. Fisker. 66 million shares average daily trading volume. 250% increase in Ocean Suv EV sales in 4 th quarter over 3rd quarter 2023...Li Auto....BYD.... Xpeng...Lion Electric...NIO... Polestar.... Vicinity Motors... ChargePoint, more.
This could threaten the national security of the United States, ban them 😂😂
China has hundreds of EV manufacturing companies which is not sustainable anyway. The fierce price war is the necessary step to weed out the weak ones, leaving only a few competitive companies to stand at the end.
It's normal. Early ICE vehicles were the same. Many new small brands have come up. Then the big brands acquired them.
In the US, they are competing who can sell more above MSRP. Damn those greedy dealers. I want a hybrid prius PHEV though. 😂
loss leading strategy to drive out smaller players before increasing prices to recoup the losses. brilliant for those with deep enough pockets to do so.
The Chinese has Good affordable Prices for Everyone, simply because they have all the Recourse for EV Car production,The Battery 🔋🔋🔋,,Metals ,etc all are in China so I will say they are doing Great Job ,CHERY AUTOMOBILE 🚗 Is Making Very Beautiful EV 🚗 with Very Affordable Prices for Every Pocket for both the high and medium ,and Normal class People , Kudos to China Auto makers👍
what's the point 60+% electricity from coal?
"Reatricted on geely" lol these china correspondents are funny
Lol west freaking out coz their sales 📉
多简单的事儿啊！！！一句话：“威胁美国国家安全”。。。结束
'The price war is not sustainable for any company' - what it really meant is 'the price war is not sustainable for any EU, American and American car maker'. In the years to come, these countries will see more protectionist policies, hefty government subsidies, and propaganda portraying China being 'over-capacity, unfair in trade practices, unsustainable'. And guess which country will emerge as the global winner in EV manufacturing and reducing CO2 emissions?
China EV Affordable, other are over price..
Remember Highlander: there can only be one. Tesla will be the one….
More EV Less Pollution. Blue Sky Clean Air Health better Live. Nobody talks about that. EV Car is more than just a Car. Is a transition to a New Energy System. Transition to a Better Life.
Imcumbency？it didn’t make sense, did she mean combustion ?😅
🥂
Don’t see any price reduction, EVs in America are still 50k
That's because you have a policy called the IRA AND a 27.5% tariff that is intentionally designed to keep out cheap Chinese EVs. So you reap what you sow.
Of course, the US is preventing Chinese EVs from entering, and even trying to ban EV components made in China. Thus why Chinese customers can buy a reasonably good EV for less than $10K, whereas a similar EV in the US costs many times more.
What part of America you’re referring to? If it’s Northern America, the market is being protected by trade barriers. You won’t see any price cuts anytime soon but if it’s South America, you might have a chance of driving a cheap BYD next year. They’ve set up a factory in Brazil.
I remember buying a $400 vcd player in 1993 but 2 yrs later I bought a $250 dvd player . How ? Chyynnaa made it cheap as hell LOL
South America BYD Factory in Salvador Bahia Brazil.
Has the BYD been reliable? For how long?
BYD is not some startup. Please stop exposing your ignorance in a public forum!
See Those byd taxi cars, and didi cars, they run 600000 kms easy!
Their first generation E6 model used as ev taxis in Shenzhen have been plying the streets since 2017. They would have clocked up hundreds of thousands of km in mileage by now.
Agree with youuuu
There will be too much bloatware in Xiaomi or Huawei cars.
As noted by the commentators, the Chinese EV industry is led by government policy incentives, but built upon on efficient supply chain, that China uniquely own as decades of global manufacturer. It is much more cheaper than other global markets and made Tesla miracle possible via the Shanghai Giga factory. Through EV, Chinese car industry essentially skipped over the tech hurdles or barriers from ICE vehicles that western countries placing on China for decades. It also meet strategic objectives such as emission reduction and autonomous driving, which in turn drive growth of clean energy, chip making and software development etc.
I just saw China Princes wars haha
BYD is the lowest and most boring EV manufacturer in China. Its advantage lies in the hybrid. Other manufacturers such as Geely EV are much better than BYD.
i don't see winners in EV companies lots of losers and sour investors for sure. EV industry is the growth sector that has no growth. Even Donald Trump doesn't win presidential race US and global consumers are not keen in taking EV up. So conversion away from ICE cars will take a lot longer or might not even happen as new technology in Hybrid, Hydrogen and solid state batteries being developed. The world has moved away from EV investing and refocusing in technologies like self driving. There is no money in EV with no growth and single digit margins. But China still has not waken up pouring more money in just make EV more of a commodity. Good Luck I am out of this game moving on
Buy China Last
how much forced labour does it take to build a car? lololol
Yes! Loads of them. But all the forced labour you assumed are AI robotics already!
Human labour are nearly 100% useless in the car making process nowadays in China.
Maybe unlike those US or Europe car makers still heavily rely on human labour who ask for more wages & benefits? LOL
Wake up
Can you actually force someone to make something like an ev? It's not like picking cotton.
Making EVs requires engineers not slave labor, there's no way you can make them by hand.
based on the chinese real estate market, im going to say chinese subsidizing EV is gonna be shit too
Ev subsidy ended two years ago. Ev makers are on their own.
Subsidies stopped in 2022. Please keep up with the changes.
The housing bubble was not due to subsidies. That's a different thing.
@@privacyhelpThe market was so subsidized that the people exploited by speculating like it was the stock market. Definitely unique to China
Too many Chinese bots posting comments
The EV craze is over.
Chinese "national security" laws require companies, including BYD, *to assist with intelligence gathering.*
- The Chinese government basically knows who is driving, and they can remotely control your car brake system from Beijing.
You are just making a low-probability event absolute, and these are just your guesses without evidence.
你不是坏就是傻逼知道不？
@@ouyangon5711 Would you be a smarter person if you fact-check your comment before posting it?
@@ouyangon5711 My comment is 100% correct based on fact.
Go and check it!
@@ouyangon5711 The CIA can't even provide evidence, is he even stronger than the CIA?
Chinese 🇨🇳 electric cars are *heavily subsidized* by many levels of Chinese government. Some people bought them, threw them away without driving, and still made profits.
- That's why there are millions of new cars abandoned by owners across the country.
And this is not an exaggeration.
As an ev owner and Chinese,I can tell you got the wrong information. Believe or not,the rapid growth of Chinese ev and quality is out of your imagination.three years ago,the best sold ev car is Tesla,but now is totally different
@@qiaoxiaoshan2051 Where are you living?
@@AhmetTekin101 China ，Ningxia Hui Autonomous Region
@@qiaoxiaoshan2051 How can you access YT from there?
@@AhmetTekin101 VPN,super easy,any more question?
I will never ever buy a Chinese made EV
Low grade vehicle
I’ve seen a lot of fires in China lately
Too many Chinese made vehicles lighting up!!!!
Teslas are made in China...
That sounds a big loss to China LOL
The future of Chinese electric cars outside China is still uncertain.
They are copycats and have not been proven to be safe.
Currently, they are mostly sold in Russia, where most Western companies have left.
Your comment shows that you know nothing about ev,there are very few Chinese ev sold to Russia,because it's too cold to use ev in Russia,most of Chinese ev sold to south Asia,Brazil,Mexico,and China,please do some research
@@qiaoxiaoshan2051 Most Chinese EV manufacturers reported loss last year. Many went out of businesses.
BYD is still uncertain because of using forced labor.
@@AhmetTekin101 byd used forced labor?where you got that information?there are so many workers want to work in byd,and you think byd use forced labor?
@@qiaoxiaoshan2051 Absolutely! It's a public knowledge. Why don't you try to find out?
@@AhmetTekin101 u r crazy, and brainwashed, BYD is now the top employer in china and high-pay, even like Peking university and Qinghua uinversity.
byd tofu car can spontaneous combustion anytime anyway any place
1,4 BILLION WELL DICIPLINED HARD WORKERS 16 HOURS A DAY!! any TAKERS. CHALLENGERS??????
As usual, China takes the road to nowhere.
Their road came to Asean where Byd is the best selling ev brand by a wide margin. Since launching back in Nov 2022. They are also building their factory in Thailand to service the RHD market.
“ 只有它（中共）垮台，中国人才有好日子过！我们中华民族才有希望，如果不是这样的话，那我们中国人永远永远黑暗下去，所以我希望大家都能认清这样的问题，退出共产党。”
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