Fortune magazine seems to think so.
BYD’s vertical integration seems to be the secret sauce.
The question yet remains about quality and reliability of BYD offerings. I expect that question will be answered once they are more widely available and tested against Tesla’a & Kia models.
Made in China is no longer a pejorative.
Tesla is exporting China made Model Y to Canada.
“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.
Currently in the U.S., made-in-China EVs are subject to a 25% tariff, which goes atop a 2.5% tariff on imported cars.
But if BYD or other Chinese carmakers were to come in with a $20,000 car, noted Dunne, they’d still be a “good position” despite the high tariffs, given that the average price of a new car in the U.S. this year is about $48,000.
Even today, BYD’s Dolphin hatchback starts at $33,000 in Britain, according to Reuters, or nearly 30% below the starting price of the VW’s rival ID.3 hatchback.
But BYD is planning to export much cheaper models to markets around the world, including Europe, South America, and Southeast Asia.