CleanTechnica: two articles of interest

e u, the 'peoples' car

 

I can't even hardly buy a pencil made in China that works for it's intended purpose for any length of time. I don't think Chinese are incapable of quality manufacturing, I just think there's a huge cultural disconnect. In China, price is king ... and I mean king over all other considerations. Embellishing your product's performance is also commonplace.

I worked at a large software/hardware company owned by the nicest Taiwanese man that routinely had to repair/replace specific hardware that would fail on a regular basis. I finally asked him one day why we don't just purchase a competitor's product and end the warranty headache. The reason? The competitor's part was $10 more. It didn't matter to him that each warranty replacement/repair nullified the parts savings on at least 20 parts. That component was cheaper, so that's what we're using.

I suspect that in China, a $9,000 car that had to be repaired on a weekly basis would sell more than a $20,000 car that never needed repairs. I don't think that will fly in the US and Europe.

 

I had the opportunity to drive an EV from BYD (China automaker) on a closed track along with a number of plug-in offerings available here.

It was truly remarkable to observe firsthand what the cost tradeoffs to achieve a super low price would result in. The electric motor was slow & noisy. The regenerative brakes were rough & noisy. The car itself was utilitarian. Standards in our market would make it a non-starter, even without taking into account the lack of safety features. But if you simply wanted basic electric-only transport, it did indeed deliver.

Sadly, many early-adopters are poor representation of balance, yet they don't recognize that... despite the obvious willingness to spend top-dollar for emerging technology. They gravitate to that opposite extreme, where pricing isn't a priority... which is why Tesla has been so successful. Tesla will continue to be successful too... but not in the same way. Success later this year will depend upon cost-reduction choices. The generous tax-credit phaseout will bring those changes. Sales will drop as a result, settling at sustainable level.

I'm tired of the blatant efforts to stir discussion by bringing up comparisons obviously not relevant to the market changes taking place now. Events of the past don't apply well, or at all, when the audience is different. That's why early-adopter preference may not be applicable to ordinary consumers. Mainstream sales have little in common with the draws of introductory crowds.

Observations of other markets is what helps bring about a better understanding of what we will soon be facing. Looking close at the very large Chinese market with a very different culture and very different priorities will teach us more about what we need to consider.