For nearly 100 years, Toyota focused on making its high-tech cars more affordable. But when the head of Toyota’s electric vehicles division, Takero Kato, visited China in 2018, he realized that Chinese car parts were incredibly competitive. This realization led to China overtaking Japan as the world’s biggest auto exporter in 2023. BYD, a Chinese company, even outsold Tesla in China. Chinese auto makers plan to enter Western markets, challenging companies like Ford, General Motors, and Volkswagen. However, this has led to concerns about low-cost, high-tech cars flooding these markets. To protect their own industries, European nations are considering import tariffs on these cars. The U.S government has also been offering subsidies to encourage domestic manufacturing. Despite the challenges, Chinese car manufacturers, like BYD, still aim to crack the U.S. market, given their ability to make much cheaper cars. However, it’s important to note that once Chinese companies start manufacturing outside of China, they lose the state subsidies that boost their cost advantage. This trend has prompted Western governments to carefully consider the impact on their net zero ambitions, given the rising competition from China.
>>Join our Facebook Group be part of community. <<