Hello, everyone! Akito here from Singapore, bringing you the latest update on China’s cost-competitive electric vehicles and their impact on the global market.
China’s electric vehicles (EVs) have been gaining popularity worldwide, including in Singapore. It’s becoming increasingly common to use ride-hailing apps and get picked up by a driver in a BYD EV. Europe, however, has raised concerns about the influx of cheap Chinese-made EVs, similar to the problems faced by the US during the 1970s and 80s when Japanese cars dominated the market.
Back then, fuel-efficient cars like Honda Motor’s Civic gained popularity in America, causing major US automakers like General Motors to suffer. This led to layoffs and protests, commonly known as “Japan-bashing,” in cities like Detroit. Japanese automakers responded by expanding their local production in the US, creating jobs and winning public sentiment.
Fast forward to 2023, Chinese EV companies are taking a strategic shift. They have announced plans to start manufacturing in Europe to address concerns about cheap EVs flooding the market. This move echoes the Japanese automakers’ expansion into the US market decades ago, but there is a key difference. China already has a massive home market that even European giants rely on, so if the EU escalates its aggressive stance towards China, it could potentially harm European automakers.
In a small Japanese town called Kikuyo, the arrival of Taiwan Semiconductor Manufacturing Co. (TSMC) has brought about significant changes. Traffic jams, rising property prices, and staff battles have become the new norm as Japan aims to revive its reputation as a chip manufacturing hub. This shift poses challenges for Japan, including labor shortages and infrastructure constraints.
In another development, Japan’s electric vehicle charging infrastructure is facing issues. The country has lost over 2,700 charging stations this year alone, indicating that the existing infrastructure is aging faster than it’s being used. Replacement costs for old chargers can be significant, discouraging charging station operators. With electric cars still being a small fraction of the market, the economics of charging stations may not make sense for many operators.
Huawei, despite facing US sanctions and disruptions to its supply chain, recently unveiled its first 5G-capable smartphone. The company is now working extra hours to meet the surging domestic demand for its smartphones. This unexpected move by Huawei surprised many observers and shows the company’s determination to continue its consumer business in China, where its devices are still popular.
That’s all for now. Be sure to check out our suggested reads and stay updated on the latest tech news. Thank you for joining me today! This is Akito from Singapore, signing off.
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