China is way ahead of Japan (and most of the world) when it comes to EVs, and it doesn't look like it will catch up anytime soon.
The integration of multiple components into a single drive unit that BYD calls E-Axle was the most impressive part. Between the E-Axle and the economies of scale that BYD can achieve, it can sell its EVs at very affordable prices that non-Chinese automakers simply can't match. Japan used to be a world leader in electric and electrified vehicles in the early 2000s, but its lead has since subsided, and it lags behind most developed nations in this regard.
This approach, combined with the economies of scale goes a long way toward explaining how these highly competent Chinese EVs can be sold at such low prices. The BYD Atto 3 was chosen for this project not only because of its international success but also because it ranked very highly in the 2023 Japan EV of the Year awards and another BYD model won.
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