Tono get a To understand why Akio Toyoda announced on Jan. 26 that he would hand over the keys to the world’s largest automaker to his second-in-command, Koji Sato, watch the surreal video of the two of them driving Toyota’s first electric Lexus in 2021 (electric car). Akio Toyoda is at the helm.At first, it was obvious that he was a bit electric car Skeptic: He noticed that the car felt heavy to drive. Then he puts his feet on the floor and, as the speed picks up, he cheers like an overexcited Top Gun pilot. It’s daunting — but relatable.Toyota is regarded by many as electric car behind. In announcing his decision to cede the reins to Mr Sato, who is 13 years his junior, the chairman-designate made it clear that now is the time for a new generation to step up to the electric age.
Much of the media commentary surrounding Toyoda’s move saw it as a response to Tesla. That was too Western-centric.Tesla could be the world’s largest electric car The producer, according to its boss Elon Musk, was so far ahead of the competition that he couldn’t see Number Two with a telescope. It ignores, however, a Chinese newcomer that, despite Mr. Musk’s rhetoric, Toyota is undoubtedly taking it as seriously as Tesla.This is BYDcould overtake Tesla this year as the world’s largest seller of pure electric vehicles electric cars (excluding the hybrid it also makes). BYD is from toyota electric car It is China’s partner and a rising global competitor. What’s more, it emulates many of the traits that have made Toyota the world’s most successful car company for decades.
The two East Asian companies share historical similarities. They didn’t start in the auto industry. The company that founded Toyota Corporation manufactures automatic looms. BYDThe initial product was cell phone batteries. From the start, they were so far behind their global carmaking rivals that they wanted to do things differently. In pre-war Japan, Toyota experimented with using charcoal as a fuel instead of gasoline. BYD Using its battery expertise to focus on electric cars and plug-in hybrids, known in China as new energy vehicles (new energy vehiclesSecond). They all honed their skills at home, and when they went abroad, they all started in relatively underdeveloped auto markets.
However, these tentative beginnings in carmaking soon took on a life of their own. In the six years from 1955 to 1961, Toyota’s exports increased more than 40-fold, and it hasn’t looked back since. BYD Said it took 13 years to make the first million new energy vehiclesSecond. It took a year to reach the second million. Six months later, it hit 3 million. It lists operations in dozens of countries and says it has manufacturing sites in China, Brazil, Hungary, India and more. It makes electric buses in California’s Mojave Desert.It is now the world’s second-largest producer of lithium-ion batteries, after CATL China, as well as manufacturers of commercial vehicles such as trucks and taxis, as well as electronics. These provide it with a bridgehead for global expansion.
It’s the factory floor and the bottom line that really matter, though. and here, BYD This is what Tu Le of consultancy Sino Auto Insights calls the “new Toyota”. The Japanese company has been a manufacturing genius in the industry for decades. The “Toyota Way” is a combination of continuous improvement, or improvelean manufacturing and unrivaled supply chain management. BYD Do things differently. It is one of the most vertically integrated companies in the world, making everything from its own seats to batteries and semiconductors. But like the Toyota, it’s a paragon of efficiency. Mr. Le used a Silicon Valley term, GSD, to describe its manufacturing strength. It stands for “getting things done”.Taylor Ogan’s investment firm, Snow Bull Capital, owns BYD, was shocked by its level of automation. “The only humans you see in these factories are robots doing end-of-line inspections or repairs. BYD Redefine car manufacturing like Toyota did. “Warren Buffett, an icon in the American investment community, is also a fan and major shareholder of it.
Efficiency is profitable engine oil. BYD There is maddeningly little up-to-date information on its operations. But on Jan. 30, it gave a preliminary estimate of net profit for 2022. Between $2.4 billion and $2.5 billion, more than five times the 2021 figure.Based on this, Mr Ogan said his firm’s calculations showed that over the past quarter, gross margin BYDThe auto business overtook Tesla to become by far the most profitable major automaker.He thinks this reflects the fact BYDwhose livelihood comes from building plug-in cars for the mass market, increasingly selling higher-margin premium electric carSecond. Unlike Tesla, it has a wide range of lines and styles, and regularly introduces new models.
The biggest unknown is the United States, where BYD Currently not selling cars. It’s not the first foreign automaker to worry about a backlash in its home state of Detroit.Toyota, like other Japanese automakers, became us– Japan trade war in the 80’s.Geopolitics under pressure as U.S.-China rivalry nears boiling point BYD is huge. It was expected to make a big splash at the Consumer Electronics Show in Las Vegas in January, but that didn’t happen.A big barrier to entry into the U.S. has been tariffs on Chinese manufacturing, dating back to Donald Trump’s presidency, Mr. Ogan said. electric car Components, such as batteries.
build your defenses
Ultimately its US launch seemed inevitable. Despite geopolitical turmoil, U.S. automakers are so dependent on sales in China, the world’s largest auto market, that they are powerless to lobby against Chinese entrants at home lest China shut them out. and, BYD may provide that electric carThat said, at just under $40,000 a bottle, it will energize the mass market. And, if all else fails, BYD Toyota’s help could be enlisted to break into the U.S. market, especially if their joint venture in China turns into an up-and-coming partnership.
For now, it’s safe to say that Toyota is aware of the BYD Because it really is an opportunity. Like Toyota, BYD Don’t brag about your strengths, but quietly deliver results. This is another point where it differs from Tesla. ■
Read more from our global business columnist Schumpeter:
How will Satya Nadella handle Microsoft’s ChatGPT moment? (January 25)
TSMC is making the most of a bad geopolitical situation (January 19)
Go to Texas to see a clean energy anti-green future (January 12)
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