Reflections on China’s Transformation of the Car Industry, Part A: The Disruptions

Western car manufacturers are unprepared and seem to be passively watching it unfold.

https://electrek.co/2024/12/26/the-rate-at-which-china-has-rebuilt-its-car-industry-is-truly-staggering/

Non-Medium-Members: read this article free on Substack.

In 2020, China set a 50% EV sales goal by 2035.

https://www.cnbc.com/2024/08/09/more-than-half-of-new-cars-sold-in-china-are-now-electric-or-hybrid.html

It was accomplished in 2024! During my two trips to China over the past two years, I observed a noticeable increase in the number of EVs on the roads.

EVs, pioneered by Tesla, provide a unique driving experience and significant cost savings. While nearly all traditional manufacturers now produce EVs, they remain expensive and still follow the outdated 6-year product cycle. Chinese EV manufacturers have changed the game: they embrace a “Release Often” strategy (just check BYD’s website to see multiple new models each year) at more affordable prices, without compromising on reasonable quality.

https://www.whichcar.com.au/news/byd-shark-6-racks-up-nearly-4000-sales-in-first-month