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BYD is shaking up the automotive industry with its verticalized production. Discover how it challenges Toyota's lean model and puts giants like Tesla on its innovation radar!
In the world of automakers, one question has caught the attention of experts and consumers: how does BYD manage to manufacture electric cars at such competitive prices?
The answer lies in a quiet revolution that challenges traditional vehicle production methods, including the time-honored Japanese lean manufacturing model.
This transformation has not only boosted Chinese companies, but has also provoked a response from Japanese giants, which are now seeking to reinvent themselves to maintain their relevance in the global market.
The Japanese revolution in the post-war period
After World War II, Japan faced the enormous challenge of rebuilding its economy.
With scarce resources, Japanese automakers, led by Toyota, developed an innovative system known as lean production.
This model was based on two pillars: Just in Time, which eliminated inventory by producing parts only when needed, and the Kaizen, which promoted continuous improvements in processes.
As explained by the channel Turbo Formula, “the lean model reduced costs, increased efficiency and brought exceptional quality to Japanese vehicles”, consolidating the country as a leader in the automotive sector for decades.
However, the transition to electric vehicles has brought new challenges that require different strategies.
BYD and verticalized production
While Japanese automakers excelled with their lean methods, companies like BYD changed the game by adopting verticalized production.
This approach eliminates intermediaries and concentrates the manufacturing of essential components, such as batteries and electric motors, within the company itself.
According to Formula Turbo, “BYD controls the entire process, from the extraction of raw materials to the delivery of the vehicle to the consumer”, ensuring reduced costs and greater efficiency.
In addition, BYD has battery factories and even its own ships for transportation, which significantly reduces logistics costs.
This model allowed the Chinese automaker to challenge major market players by offering more affordable electric vehicles with cutting-edge technologies.
Tesla: innovation and automation
Tesla is another company that has adopted verticalized production, but with a difference: the use of highly advanced technologies.
With its Gigafactories, Tesla integrates all production stages into an automated environment.
As pointed out by the channel Fórmula Turbo, “These factories use artificial intelligence and robotics to monitor and adjust each phase of the process”, ensuring efficiency and vehicle customization.
Elon Musk, CEO of Tesla, believes that controlling every detail of production is essential to innovate quickly and meet the demands of a constantly evolving market.
This total control also allows Tesla to offer innovative solutions, such as longer-lasting batteries and autonomous driving systems.
The impact on the global market
The rise of verticalized production is redefining the standards of the automotive industry.
While the lean model offers flexibility and reduced waste, verticalized production guarantees independence and greater cost control.
According to experts, automakers that do not adapt to these new trends may lose relevance in the market, especially with the advancement of electric vehicles.
Japanese automakers react
Given this scenario, companies like Toyota, Nissan and Honda began investing in research and development to integrate automation and the production of essential components.
Robots and intelligent systems are already being incorporated into their factories, combining the lean model with the demands of the modern market.
As reported by Fórmula Turbo, “Japanese automakers have created research centers to explore technologies such as artificial intelligence, robotics and manufacturing their own batteries”, seeking to compete with Chinese and American giants.
Even so, the question remains: will they be able to keep up with the speed and efficiency of the new market leaders?
The role of innovation in Brazil
The impact of these changes is also being felt in Brazil, where brands such as BYD and Tesla are expanding their operations.
BYD, for example, has already announced investments to install battery factories in the country, taking advantage of the emerging market for electric vehicles.
Meanwhile, traditional automakers such as Toyota and Honda, are seeking to modernize their assembly lines to remain competitive on the global stage.
These initiatives can create jobs, stimulate the local economy and accelerate the transition to a more sustainable fleet.
What is the future of the automotive industry?
The dispute between lean and verticalized production is far from over, but one thing is certain: innovation will be the differentiator for automakers to stand out in the global market.
Whether through automation or independence in the supply of components, companies that invest in technology and efficiency will be better prepared for the challenges of the future.
Meanwhile, consumers around the world will continue to benefit from the fierce competition between these industry giants.
Do you believe that verticalized production will be the global standard in the future, or does the lean model still have room to evolve and surprise?
All of this is being financed with very low interest rates from the Chinese government. No one has developed cutting-edge technology without almost no money.
And why is this bad for the consumer?
Not for the consumer! But for the worker, as companies migrated to China and closed in their home countries.
So why didn't the countries themselves develop this same system before, since it worked in China?
The article is manipulative. It is not sincere. Toyota already did this.
In the case of Brazil, there is no money left to invest... the public sector consumes everything... we have the most expensive judiciary in the world... corruption drains a large part of the wealth generated...
China issues its own currency and finances its own economy. They do not follow the neoliberal prescription of spending caps. They simply spend and, as you have seen, they have no problems with inflation.
If closing job vacancies in the EU or the European Union is a reality, it is not what seems to be happening in Brazil, with Chinese investments here!
Hahaha… I thought this decision was made by companies that only aim to increase their profits with cheap Chinese labor… It's each one!
For the consumer who hasn't lost his source of income to China, it's great. But for countries like ours, it will be ripped off.
When the head doesn't think, the body suffers.
Countries should have just adapted to this right away, don't you think? But they put incapable leaders in place and that's what happens. The world is a fierce competition between several players. Either the people choose a good leader and enter the competition at a high level, or there's no point in complaining if another country is doing better and taking up all the space.
Yes, but whoever they want can be elected president. If they don't change practically the entire Congress, things will remain the same. We have several groups "pulling the strings" for themselves, always playing to their own interests and not to the real needs of the nation. It is very difficult to fix this.
Dude, China is in 2050
In 2050 in technology, and in 1600 in slave labor!
Find out how employees are working here in Brazil.
China is as smart as Nazi Germany! It uses extreme intelligence for evil
.very well placed
You've been watching too much History Chanel, it's time to base yourself on reality, there is slave labor here in Brazil, our minimum wage is lower than that of China and here the congressmen are landowners and slave owners.
When all the cheapest cars are in the range of 250.000,00, we will understand
In China, there is no private bank that chooses the President of the Central Bank who sets the highest interest rates on the planet. And Brazil has a fraudulent internal debt that has already been paid off about 20 times. An increase of just 1% in this fraudulent debt makes the banks earn 55 billion without doing absolutely anything.
In Brazil, there are few banks and governments change, currencies change, and it seems that nothing changes while deputies earn a market value of 1.800,00 per month, there are many people who face sun and rain, crowded buses for a measly 1.441,88 and still pretend to be happy, after all, cashiers and gas station attendants are no longer professions.
In China, sellouts, privateers, Pentecostal charlatans, **** militiamen and secret budget suckers are not created…
In China there is, ****, lack of freedom, lack of freedom of expression, censorship, injustice, political imprisonment, torture, forced organ harvesting, etc. etc. If you like it so much, go there you fake communist...
Injustices? It depends on your point of view. Freedom on an empty stomach to post hate on Twitter?
From Brazil Paralelo, China has achieved the greatest advances in all areas of the exact and human sciences, while in the West there have only been setbacks with eternal wars.
What is created there is slave labor and subhuman living conditions.
Correct! Elon Musk's companies would be nothing without the help of the American government.
The change of product, from metallurgical to electrical, allowed this change in production system.
In the future this will evolve into standard components, eliminating verticalization... engines, batteries, suspensions will be supermarket items...