Comment by Kirby64
7 hours ago
> The complaint here, is that Chinese manufacturers, who are mostly in a death battle against each other and not profitable are even cheaper than Tesla and Toyota. In the long run, I suspect that picture will simply not be sustainable for those companies.
Citation needed. Yes, the many Chinese manufacturers are fighting each other... but I see no reason why they can't maintain prices. And I doubt they're all unprofitable, especially the big ones like BYD.
It's not a matter of maintaining prices. It's what will happen when a winner emerges and the winner naturally raises prices.
is this what happens in China's market? because my understanding is that China loves having an array of competitors. their entire strategy is just to 'build the stage' (via infra buildouts, workforce training, etc) for private enterprises to capitalize on which means rich fields for everyone. and the more that compete, the better it is for their economy. it's why there's something like six large smartphone makers all competing with one another (not counting the myriad smaller makers that exist) - how many large smartphone makers exist in the US?
But the companies are not profitable; their losses are being covered by the Chinese state. The question is whether this is actually an effective strategy long term.