https://www.economist.com/media-assets/audio/062%20Business%...
It's fairly common across the EV industry in China.
BYD is an amazing product and makes good cars. The other manufacturers not so much, as is reflected in Chinese EV car sales [0].
That's why manufacturers like SAIC (MG Motors), GAG (Wuling Motors), etc have resorted to trying to export abroad because they cannot beat BYD domestically, but this faces hurdles as most other major markets abroad (VN, JP, SK, ID, IN, Brazil, EU, MX, etc) place tariffs on autumotiive exports, forcing Chinese manufacturers to either open entire factories abroad with JVs or quit those markets
Every factory SAIC, GAG, GAC, etc opens with a foreign JV is an equivalent set of jobs and IP lost in China.
[0] - https://autovista24.autovistagroup.com/news/big-boost-chines...
In fact, in one of the weirder turns of recent geopolitical history, the Vietnamese would prefer to be American allies over Chinese if forced to choose, and it's not even close.
[1]https://www.reddit.com/r/VietNam/comments/1c22j7l/vietnam_st...
If you check the National Bureau of Statistics' data on 亏损企业 (月度数据 > 指标 > 工业 > 工业企业主要经济指标), https://data.stats.gov.cn you see that there is a yearly cycle where the number jumps in February: from 67,570 in 2021-12 to 132,371 in 2022-02 (January is skipped), from 91,222 in 2022-12 to 161,892 in 2023-2, and from 103,994 in 2023-12 to 167,895 in 2025-02. By plotting the last available month for every year, 2024 ends up sticking out a bit more than it will once the end-of-year data is out.
Nonetheless, the overall trend is undeniable.
Aside overcapacity should be synonymous of low prices, I still wait to see here in EU prices like in the BRICS area for products imported from China. An example a BYD Atto 3 here cost a bit less than 40k€ while in Thailand cost a bit less than 10k€ https://asia.nikkei.com/content/1f9ed40b4b44745e1a39fafaf94b... such price delta have no justification in mere free market economical terms, have only political justifications NONE OF THEM acceptable by the civil society. I still wait to see LFP batteries prices drops like in China to have a well-sized home battery at a price cheap enough to make buying it convenient, let's say 50kWh for 5k€. Let's say 15kW p.v. inverter for 1.5k€ etc.
If China manufacturers goes broke we customers do the same in EU, and I suspect in USA to, simply to enrich some local cleptocrats.
https://en.wikipedia.org/wiki/Timeline_of_the_South_China_Se...
Note:
> Unlike earlier psyop missions, which sought specific tactical advantage on the battlefield, the post-9/11 operations hoped to create broader change in public opinion across entire regions.
> ...
> Nevertheless, the Pentagon’s clandestine propaganda efforts are set to continue. In an unclassified strategy document last year, top Pentagon generals wrote that the U.S. military could undermine adversaries such as China and Russia using “disinformation spread across social media, false narratives disguised as news, and similar subversive activities [to] weaken societal trust by undermining the foundations of government.”
the gov is heavily investing & publicizing "New productive forces"[] that include "new energy vehicles"
[]: https://en.wikipedia.org/wiki/New_productive_forces
[]:https://www.miit.gov.cn/zwgk/zcwj/wjfb/yj/art/2024/art_ad15b...
[1]
> In 2021, the economic mix of the Philippine economy was approximately 61% services, 17.6% manufacturing, and 10.1% agriculture. (https://www.trade.gov/country-commercial-guides/philippines-...)
[2] https://en.m.wikipedia.org/wiki/Call_center_industry_in_the_...
"How are China's 'new three' export pillars powering the economy?". https://news.cgtn.com/news/2024-03-07/How-are-China-s-new-th...
EV is literally one of the key pillars championed by the Chinese government as part of its 'new economy' initiative, straight from the horse's mouth.
BYD is building an EV plant in Turkye for $1bn.
https://electrek.co/2024/07/08/byd-building-huge-1-billion-e...
Some overly subsidized EV companies are going broke, and their inflated housing market crashes. Evergrande. Of course. That's a good thing.
Still stronger growth than everywhere else. And their chip industry will soon be independent. This US war backfired massively.
UzAvtosanoat (the Uzbek govt manufacturer) is the largest automotive manufacturer in Central Asia, and because every single Central Asian country has a FTA with Uzbekistan this puts them at a massive advantage.
It is UzAvtosanoat that manufactures GM, Hyundai, and other cars for the Central Asian market. Even BYD Central Asia has to partner and ToT IP to UzAvtosanoat for manufacturing and entry into the Central Asian market [0].
My point is that "Made in China" products are limited by export restrictions as every country has in place. What happens to the glut of cars "made in China" that cannot be sold abroad? This is the crux of the overproduction problem.
[0] - https://www.byd.com/eu/news-list/BYD_Signs_Investment_Agreem...
