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BYD is set to enter many western markets with electric cars with full self-driving systems based on Deep Seek AI technology. Already a major car maker in several markets BYD is set to bring advanced AI technology to the US car market at a price that other auto makers will be unable to match. It will be interesting to see how this major Chinese car maker impacts the US market. Any thoughts, additions or comments sought on this subject.
Like the Chinese have penetrated many markets, the auto market will be no exception, even if not in the US. If BYD penetrates many foreign markets, all foreign auto and parts makers will take a serious hit. This will make all of the auto markets more competitive. Will this upset the auto market like Deep Seek impacts the AI market, their cost structure is far lower than the worldwide competition.
You mentioned impacts on the US market, where they will sell exactly 0 units if trade barriers are kept that high.
But yes, they are already entering the EU and are way into Brazil, Singapore and many others. And it is not just BYD, check Xpeng and Nio. And don't forget that the biggest shareholder of Volvo is Geely, and that old European brands such as MG or Polestar are fully Chinese owned.
You mentioned impacts on the US market, where they will sell exactly 0 units if trade barriers are kept that high.
But yes, they are already entering the EU and are way into Brazil, Singapore and many others. And it is not just BYD, check Xpeng and Nio. And don't forget that the biggest shareholder of Volvo is Geely, and that old European brands such as MG or Polestar are fully Chinese owned.
BYD is set to enter many western markets with electric cars with full self-driving systems based on Deep Seek AI technology. Already a major car maker in several markets BYD is set to bring advanced AI technology to the US car market at a price that other auto makers will be unable to match. It will be interesting to see how this major Chinese car maker impacts the US market. Any thoughts, additions or comments sought on this subject.
BYD is going to have to deal with tariffs in most Western markets as well as some developing markets, like Brazil. But I see them having a strong effect in 3 ways:
* They will enter the EU and Brazil through local factories that pay prevailing local wages and requires some level of local content for the incoming parts. They costs are likely to be higher than "made in China" vehicles, but they'll be pretty aggressively priced given BYD's scale.
* They will also ramp up direct sales in places like Australia, Singapore, Vietnam and Mexico, that don't have tariffs. They might even figure out some new unique solutions for Africa, pairing cars with cheap solar for both driving and V2B. Pretty clear that BYD is going to become the global EV volume leader.
* Sheer volume and pricing is going to continue to isolate and erode global market share of the current Western automobile manufacturers, both EV and ICE. And we'll probably see a global inversion of pricing where EVs become marginally or even significantly cheaper than ICE vehicles.
BYD is going to have to deal with tariffs in most Western markets as well as some developing markets, like Brazil. But I see them having a strong effect in 3 ways:
* They will enter the EU and Brazil through local factories that pay prevailing local wages and requires some level of local content for the incoming parts. They costs are likely to be higher than "made in China" vehicles, but they'll be pretty aggressively priced given BYD's scale.
* They will also ramp up direct sales in places like Australia, Singapore, Vietnam and Mexico, that don't have tariffs. They might even figure out some new unique solutions for Africa, pairing cars with cheap solar for both driving and V2B. Pretty clear that BYD is going to become the global EV volume leader.
* Sheer volume and pricing is going to continue to isolate and erode global market share of the current Western automobile manufacturers, both EV and ICE. And we'll probably see a global inversion of pricing where EVs become marginally or even significantly cheaper than ICE vehicles.
