the Bangkok International Motor Show in Nonthaburi on March 27, 2024. The transition to electric vehicles will happen far faster than is commonly understood. Legacy auto companies are not likely to be competitive in the brave new world of electric vehicles. China’s new export bans put pressure on the two US companies – Tesla and Rivian - best positioned for leadership in the EV market., China released plans to restrict graphite exports that can be sent to the US.
BYD’s Seagull is listed at $11,000 in both China and Europe. This car is “clearly a disruptor.” Mr. Lenox points out that companies selling low-priced products initially deemed inferior have succeeded in moving up the quality curve and becoming market leaders in many industries. He points to the emergence of Toyota and Honda as leaders in the 1980s.
Secondly, the upstream supply chain for EV manufacturing strongly favors China. “The battery is far and away the critical component of these cars,” and Asian manufacturers dominate this market. The largest lithium battery manufacturer globally is China’s CATL. They have a market share of 35%. Other leading Chinese manufacturers include BYD, SK On, and CALB. The US is not competitive in this market.