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Rising Star
Have you seen the auto parallel park on BYD cars
It's amazing! 🤗
It’s how Chinese companies are created. The government identifies key areas that they would like to dominate and unlocks extreme amounts of subsidies at the local and national government level for anyone trying to start a business in that area. The result is, overnight you have 500 companies all funded competing for dominance. Yes, there will be corruption and scams, but the CCP doesn’t care. What you ultimately end up having are extensive supply chains built throughout the country (eg imagine if America had 10 EV funded startups in every state) and the ones that rise to the top becomes extremely efficient and battle tested.
It’s entirely a different philosophy.
The US requires companies to be extremely fit to get off the ground, the Chinese requires the companies to be extremely fit at scale.
If the US government helped fund 500 startups all focused on drug discovery AI and each of these companies all had $20M to get them started, there would eventually be 1 or 2 that beats everyone else out. Those 1 or 2 would be absolute juggernauts having gone through the gauntlet of competition.
This is an excellent explanation and much closer to the truth than D1’s focus on subsidies. Yes, strategic industrial policy is a core element of China’s economy. There are many Chinese EV firms that are unprofitable and continue to exist due to subsidies and other central and local government support. But BYD has emerged as the juggernaut and due to vertical integration (it originally was founded as a battery company, let’s not forget) is much sturdier on its own feet than its peers.
Chief
This is the weekly propaganda piece. Just ignore it.
Have you been to China?
Is this a real question?
They’re subsidized and in-part controlled by the Chinese government (that’s not conspiracy, many companies they have absorbed were state-owned). That and making batteries has been their original business for like 30 years, making cars was never their primary business.
They’ve received something over $4B from the Chinese government on top of massive subsidies. Between the cash inflow from China, the subsidies, and not having to rely on third party battery manufacturing they can afford to flood the market with cheap cars, it’s a classic price dumping tactic.
When you have a super power pushing you forward turns out things are pretty easy. They make cool products, but I’m skeptical that they can compete at this level long-term without assistance from China.
Rising Star
D1 I know hence my comment: it’s hard to follow.
Chief
Propaganda clearly (not sure why Xi wants to broadcast CCP propaganda on FB but whatevs) but BYD does seem to make a good car for the money - they look nice and battery life is supposed to be great. Not sure on reliability but time will tell. I am thinking my next car will be elegant would certainly give them a look (currently leaning towards the Rivian truck though).
Chief
Yes I’m holding out - fully expect prices to come down for sure
The ban here is like closing our eyes and thinking they’re not there. Saw them advertised everywhere in Europe last summer.
Agree. I saw them driven everywhere across South America. Their car market is becoming something like 50% Japanese, 30% Korean, 10% Chinese, 10% other.
Rising Star
Amazing what you can achieve with government subsidies and political control of all of the resources you need.
I agree BYD is an impressive creation, but it is a government department not a private company. This is the achievement of CCP.
SM1 - it’s my comment I posted earlier (not in your thread).
We can almost view the CCP as a VC firm - they will fund pretty much anyone in critical industries the CCP cares about. There are absolutely hundreds (probably thousands) of cases of extreme fraud or failure - but the CCP doesn’t care. They want a thousand companies to go compete and see who survives and becomes the fittest at the end. It is an entirely different model and theory on how to drive innovation and corporate capabilities.
My primary point is simply - the US cannot look at a company like BYD and dismiss them as a weak company propped up by the government. Leave the Us and you’ll find BYD vehicles everywhere - the Chinese EVs are absolutely insane. The technology and the vehicle itself far exceeds what Tesla has, and Tesla is probably the best us EV.
Yes BYD has been supported by the CCP, but they also legitimately at this point in time can succeed (and probably beat) any other EV manufacturer in the world if we were to remove all government support from everyone. BYD is flat out better technology, more efficient supply chain, and has far superior operations than Tesla
in general, electric cars or electric motorbikes circulating in Indonesia still cannot overcome the comfort if there is a large enough flood so that water enters the electrical components. But I don't know yet whether BYD has anticipated this?. thanks