this post was submitted on 07 Jan 2024
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When China’s BYD recently overtook Elon Musk’s Tesla as the global leader in sales of electric vehicles, casual observers of the auto industry might have been surprised.

But what’s caught other carmakers around the world off-guard is something else about BYD, which is backed by Warren Buffett’s Berkshire Hathaway: its low prices.

“No one can match BYD on price. Period,” Michael Dunne, CEO of Asia-focused car consultancy Dunne Insights, told the Financial Times. “Boardrooms in America, Europe, Korea and Japan are in a state of shock.”

BYD can keeps its costs low in part because it owns the entire supply chain of its EV batteries, from the raw materials to the finished battery packs. That matters because a battery accounts for about 40% of a new electric vehicle’s price.

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[–] Shyfer@ttrpg.network 8 points 11 months ago (2 children)

Then it's got to be what the person below said: beating the hell out of their workers, poor conditions and benefits, stuff like that.

[–] NateNate60@lemmy.world 20 points 11 months ago

You are one hundred per cent correct. There're a million things you can criticise Chinese manufacturing for but universally poor quality isn't one of them

[–] mriormro@lemmy.world 3 points 11 months ago

One of the reasons these commodities can get so cheap is because the true cost is obfuscated through the vicious exploitation of labor at every step of the chain.

We may not have paid the full cost of the product, but those who were directly involved in their fabrication certainly did.