English 
Spanish 
4 min read
0 comments
Japanese experts were left baffled by BYD's electric car, wondering how it was possible to produce high-quality vehicles at such low costs. See how this innovation is transforming the global automotive market!
The Japanese automotive sector, known for its efficiency and tech cutting-edge, was recently on alert after witnessing the dismantling of the Act 3, an all-electric SUV from Chinese company BYD. The question that dominated the atmosphere was: “How can it be produced at such a low cost?".
The question echoed at a seminar on electric vehicles No. Japan, after the detailed presentation of the model.
Launched on the Japanese market in January 2023, the Atto 3, which costs around US$30.000 (approximately 4,4 million yen), quickly attracted attention for its cost-benefit ratio.
- Goodbye, combustion cars? Discover the 5 cheapest hybrid cars in Brazil: economy and technology at your fingertips!
- New electric bike surprises with adjustable torque for any trail and removable 800 Wh battery, guaranteeing up to 250 km per charge
- Is driving electric cars in floods DANGEROUS? Find out the whole truth
- With a COLOSSAL investment of R$9,5 BILLION, Stellantis acquires 20% of Leapmotor and can now produce, sell and export electric cars to Europe and the USA!
BYD didn't stop there. The company quickly added two more models to its lineup in Japan: the Dolphin and the Seal, both positioned as low-cost options in the electric vehicle segment.
The Dolphin, starting at $24.500 (3,63 million yen), and the Seal, starting at $33.000 (5,28 million yen), have also become market benchmarks.
However, it was the success of the Seal, seen as a direct response to the Tesla Model, that really caught the attention of the country. Launched in late June, BYD's electric sedan quickly became the best-selling imported electric vehicle in the Japan In August.
The question now is: how can BYD, along with other Chinese manufacturers, EV, can you produce vehicles at such competitive prices?
Seminar reveals production secrets
In early October, the Central Japan Economic and Trade Office held a seminar to discuss trends in battery electric vehicles (BEVs), bringing together around 70 Japanese companies from the automotive sector.
The event featured a display of over 90.000 pieces of 16 electric vehicles, all of which were of foreign origin. Among the models on display were BYD's Atto 3, NIO's ET5 and Tesla's Model Y. However, it was the Atto 3 that stole the show.
During the disassembly of the electric SUV, participants were surprised by the simplicity of the design and the integration of components, which sparked debate about how the BYD can reduce production costs so drastically.
In-house production: BYD's difference
One answer to this conundrum lies in BYD’s ability to manufacture most of its components in-house. This allows the company to significantly reduce production costs and better control quality and the supply chain.
It is worth remembering that BYD started out as a battery manufacturer, which gives it a strategic advantage in the electric vehicle sector.
The battery, for example, can account for more than a third of the total cost of an EV, and BYD makes its own batteries, which dramatically reduces costs.
Recent data from CnEVPost indicate that the company is the second largest producer of batteries for EVs in the world, with a 16,4% share of the global market, behind only the Chinese company CATL, which holds 37,1% of the market.
Integration and efficiency in production
Another important aspect is BYD’s ability to integrate complex components into simplified modules. A clear example of this is the E-Axle 8 in 1, which combines motor, inverter and reducer into a single unit.
This integration not only reduces production costs, but also reduces the number of parts, which directly impacts vehicle maintenance and efficiency.
Sho Kato, department head of Japanese company Nissin Seiki, who attended the event, said: “I was impressed by the small number of parts used by BYD and Tesla”. He further added that the company plans to use the experience gained from its current business to explore the EV market in the future.
The Japanese EV market in transformation
With the growing popularity of Chinese electric vehicles in Japan, the country's automotive market is at a time of reassessment.
The entry of manufacturers such as BYD challenges the hegemony of traditional Japanese automakers, such as Toyota and Nissan, which until now dominated the sector. The Dolphin, for example, competes directly with the Toyota Prius and the Nissan LEAF, two of the most popular electric models in Japan.
Additionally, the electric vehicle exhibition center, which opened in March 2022, has already attracted more than 450 companies interested in exploring this growing market.
New models such as Hyundai's IONIQ 6 are expected to be on display by the end of October, signaling that the future of EVs in Japan will be marked by fierce competition and constant innovation.
While Japanese automakers have dominated the automotive landscape for decades, the entry of companies like BYD shows that the electric vehicle industry is far from static. It remains to be seen how traditional manufacturers will respond to this new reality of fierce competition and low-cost innovation.
Be the first to react!