BYD’s success is in no small part due to substantial government subsidies.
We’re not talking about relatively small tax or CO2 incentives, but rather large upfront interest free loans with questionable expectations of repayment.
This meant that BYD could leapfrog the growth stage and invest directly into new large automated factories before even having found market fit.
I expect they’ll do well in smaller countries, but larger western countries with existing domestic car makers will impose large tarrifs to neutralise their unfair advantage.
We’re not talking about relatively small tax or CO2 incentives, but rather large upfront interest free loans with questionable expectations of repayment.
This meant that BYD could leapfrog the growth stage and invest directly into new large automated factories before even having found market fit.
I expect they’ll do well in smaller countries, but larger western countries with existing domestic car makers will impose large tarrifs to neutralise their unfair advantage.