China's government helped BYD become a global carmaker and take on Tesla in the EV space. The Chinese carmaker is not much older than Tesla, but it has already surpassed it, not only in the number of vehicles sold but also in revenue. The Tesla killer mantra that sounded like a broken record a while ago is now real.
Chinese auto industry had a slow start, with local carmakers producing mostly cheap knock-off copies of successful car models. Western and Japanese carmakers were seen as gods of the automotive industry, and all small Chinese companies happily copied their designs while they could only dream of offering similar technologies. These were the times when Chinese cars were scoring zero-star ratings in safety tests, and everyone laughed at them.
On their part, established carmakers were more than happy to sell their yesterday's models in China. However, while doing so, they lost sight of what China was doing. The joint ventures with local carmakers facilitated the technology transfer, while local companies hired auto industry veterans to help them overcome technology barriers. Before everyone knew it, Chinese cars were not only cheaper but also better. No wonder industry powerhouses like GM, Volkswagen, and Toyota began to suffer.
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