[HN Gopher] Japan automakers play catch-up in EV race
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       Japan automakers play catch-up in EV race
        
       Author : thunderbong
       Score  : 38 points
       Date   : 2023-11-29 10:43 UTC (12 hours ago)
        
 (HTM) web link (www3.nhk.or.jp)
 (TXT) w3m dump (www3.nhk.or.jp)
        
       | mdgrech23 wrote:
       | Nothing is what it seems in this industry. If we had a free
       | market system here in the US GM would of went out of business in
       | 08 and the streets would be filled with cheap BYD imports from
       | China. We have major domestic protectionism in place b/c in times
       | of war the auto industry can and has been used to produce the
       | machines of war. EVs produced in the US by domestic automakers
       | are heavily subsidized
        
         | elzbardico wrote:
         | Free Trade is something that powerful nations impose on less
         | powerful nations. Anything else is just ideological bullshit.
         | 
         | EDIT: I understand that free trade theoretically could be a
         | win-win game. But the real world is a lot more complicated, and
         | is a historical fact that developed nations always have and
         | continue to push for less powerful nations to open their
         | markets while abusing of protectionist practices themselves.
        
           | rwmj wrote:
           | How do you account for Singapore?
        
             | dontlaugh wrote:
             | Singapore has significant central planning as part of its
             | economy and also does some protectionism. It's also an
             | important US proxy in the region. Not unlike South Korea in
             | both respects.
        
             | elzbardico wrote:
             | Singapore economy is a result of foreign investment aided
             | by very generous tax benefits and a repressive regime that
             | ensured for a long time a low paid and compliant work-
             | force. Being also basically a city-state without natural
             | resources, Singapore was always trade-oriented and as a
             | commercial hub of course it is in an extraordinary position
             | to engage in free-trade.
             | 
             | But believing that the same recipe could be applied for
             | Argentina, South-Africa or Brasil takes a lot more faith
             | 
             | But what is funny about the Singapore example always abused
             | on those conversations is that it begs the question of why
             | people always cite a more or less tiny Asian city-state as
             | the most prominent case of the success of free-trade
             | instead of bigger economies like the US, China, Japan,
             | South Korea or the UE.
             | 
             | And the reason for that is that all those nations have
             | always engaged and still engage on protectionist practices
             | while expecting less developed markets to open their
             | borders. Subsides, Non-Tax Barriers, Direct government
             | investments, taxes and fees, you name it, they did and they
             | do it.
        
             | csomar wrote:
             | Singapore is a tiny city-state and its model can't scale
             | for large nations.
        
             | scythe wrote:
             | Singapore overlooks the strait of Malacca, the key gateway
             | by sea between India and China. It has been a strategic
             | trading port for centuries. The cost of shipping goods
             | there is correspondingly low -- ships go there anyway.
             | Consequently, it has always had a culture and economy that
             | was prepared to take advantage of our high-trade global
             | economy. Being the Switzerland of Asia doesn't hurt either.
             | 
             | Panama is the logical point of comparison -- its governance
             | has been consistently atrocious (cf. Noriega), but it
             | nonetheless remains among the front of the pack in Latin
             | America economically.
        
           | Barrin92 wrote:
           | Then why does the Jones act exist and why is the US
           | curtailing chip exports to China, and why does Mercosur want
           | a trade deal with Europe?
           | 
           | No, free trade is mutually beneficial and the natural state
           | of things, protection exists for two reasons. Pursuit of
           | military interests (blockades) or satisfying domestic rent
           | seekers. (e.g. the shipping industry, farmers etc.)
        
           | jryle70 wrote:
           | That's a very narrow minded view. China is number one
           | counterpoint. Without free trade, and very favorable terms
           | that Western countries offered, China wouldn't become the
           | superpower it is today. The tension between US and China
           | today has more to do with geopolitics than protectionism.
           | 
           | Read the following (from 1984) to understand how Deng Xiao
           | Peng saw the roles of Special Economic Zone in the revival of
           | China's economy:
           | 
           | https://www.marxists.org/reference/archive/deng-
           | xiaoping/198...
        
         | azinman2 wrote:
         | I'm not sure if you're trying to say this is good or bad. Seems
         | good to me.
        
           | droopyEyelids wrote:
           | It's too complex of a system to label the whole "good" or
           | "bad".
           | 
           | There are a many involved parties and they're affected by it
           | in multiple ways.
           | 
           | I think you're trying to say the consumer harm of increased
           | prices of EVs is outweighed by the benefits to industry etc?
        
             | azinman2 wrote:
             | The entire revolt against globalism shows that just
             | lowering price isn't enough when you no longer have a job,
             | or the job you have pays you very little.
             | 
             | It's not smart for a country to let all of their industrial
             | engine be replaced just because it's cheaper. It's more
             | expensive in the long run.
        
               | konstmonst wrote:
               | The problem is that an industry can be used as leverage
               | by China to hurt the economy. See Putin and Gazprom,
               | Tawianese Chips and so on. Globalization is good, because
               | it makes production of consumer goods more cost
               | effective. But cost alone is not worth much if the supply
               | is not reliable and can be leveraged by a potential
               | opponent.
        
           | csomar wrote:
           | It's good if the local market catches up in the next 3-4
           | years. It's catastrophic if they do not, however.
        
         | metabagel wrote:
         | GM was bailed out to save the jobs. And it's got nothing to do
         | with the "free market". The "free market" is between GM and
         | their customers.
        
       | ChatGTP wrote:
       | _Adding yet another dimension to the challenge is the
       | transformational nature of the EV business, which may ultimately
       | be driven less by hardware than software._
       | 
       | I'd argue the opposite. I wouldn't buy a software filled "smart
       | EV". I'd love a dumb as hell, electric "kei van" that's 4WD.
       | 
       | No Japanese automaker produces them however, it's absolutely
       | ridiculous considering how popular the form factor and "dumb" kei
       | car is.
        
         | toomuchtodo wrote:
         | You are not the target market. Get a second hand Leaf or Bolt
         | or similar golf cart EV.
         | 
         | https://electrek.co/2023/05/25/tesla-model-y-is-now-the-worl...
         | ("Tesla Model Y is now the world's best-selling car, first EV
         | to do so")
         | 
         | https://insideevs.com/news/698351/used-ev-prices-drop-sales-...
         | ("Polestar 2, Ford F-150 Lightning, and Kia EV6 are among the
         | slowest-selling used EVs.")
        
           | dv_dt wrote:
           | How are those non-tesla models selling used? I don't think
           | any of them are even three years old. It seems like a skewed
           | comparison.
        
             | toomuchtodo wrote:
             | Study/methodology: https://www.iseecars.com/hybrid-and-
             | electric-car-prices-stud...
             | 
             | (disclaimer: I am trying to pick up used undervalued Teslas
             | for folks in my circle who are in need of a vehicle, hence
             | my ear to the ground on this topic)
        
               | dv_dt wrote:
               | I don't dispute the numbers in the study, but without
               | added context, I think some of the comparisons lead to
               | nonsensical conclusions because of the shifting landscape
               | of new model availability with added manufacturers. Also
               | I think a lot of the mfrs, shot their used pricing in the
               | foot due to announcing future upcoming charging plug
               | changes.
               | 
               | Similarly with "slow selling new EVs" there is an
               | unrevealed item there on how much inventory some of those
               | models are supplied with. e.g dealers might be keeping a
               | high markup on models they know aren't going to be
               | delivered in high volume - so they keep cars in the lot
               | w/ high margin while pulling in curious car buyers with
               | it.
        
           | Night_Thastus wrote:
           | I would _not_ get a Leaf. Those things are quite poorly
           | designed, with no proper heating or cooling for the
           | batteries, leading to a very low lifespan on them. It 's not
           | just a first-generation problem either, it's persisted all
           | these years.
           | 
           | I love the idea of electrics, but a Leaf is not the way to
           | go.
        
             | toomuchtodo wrote:
             | That is a fair concern (and why I only buy Teslas, they are
             | the gold standard for battery pack management), but they
             | seem to hold up well enough to be shucked for a second life
             | as utility scale storage [1]. If resource constrained and
             | you still want an EV that is mostly dumb, it is a
             | reasonable option if your transportation needs are local.
             | 
             | [1] https://cleantechnica.com/2023/11/26/ev-batteries-are-
             | perfec...
        
         | pornel wrote:
         | Software is eating _all_ cars. It just happens that there weren
         | 't many good BEVs 20 years ago, so the touchscreen-takeover
         | looks correlated with EVs.
         | 
         | Old Leaf and Renault Zoe have barely any tech in them (by
         | modern standards). There was a niche Coda EV that was as "dumb"
         | as any car from its era. EVs only need software for battery
         | management.
         | 
         | Conversely, overuse of software, touchscreens and faux buttons
         | made its way to contemporary ICE cars too. The crappy UI that
         | VW has created for ID.3 has been "backported" to their ICE
         | hatchbacks. Every car you buy with a 2024 model-year is going
         | to be an iPad on wheels.
        
           | mavhc wrote:
           | My 10 year old Leaf has satnav, mobile connection, can
           | download rss feeds and speak them out loud, has cruise
           | control.
           | 
           | All the config is via touchscreen: charging timers, climate
           | timers, satnav, bluetooth, phone.
           | 
           | Has voice control, a mobile app
        
             | mwint wrote:
             | My 9 year old leaf is an S model and has none of that -
             | it's blissfully simple. Prefer it over the SL model also in
             | the family.
        
               | mavhc wrote:
               | having a screen with a satnav is a must, to compare GOM
               | miles remaining to miles remaining of route
        
             | pornel wrote:
             | 10-year-old ICE cars in its price range have the same
             | features.
             | 
             | Base model of Dacia Spring EV and Citroen Ami have no
             | touchscreens whatsoever, but these are low-low-end
             | vehicles.
        
         | hef19898 wrote:
         | Yeah, as much as I hate it, modern cars turn more and more into
         | computers on wheels. Or rather smartphone.
         | 
         | Applies to all modern cars, not just EVs.
        
       | rtpg wrote:
       | It is kind of sad to see Japanese EVs barely take off. After
       | seeing all the weird and busted stuff about Teslas (on top of the
       | "luxury price for fake luxury interior" stuff)... all I really
       | want for an EV is a Yaris but with a battery.
       | 
       | I just want normal door handles and a satnav with buttons, and
       | Japanese makers seem to be among the last holdouts.
        
         | jhallenworld wrote:
         | Chevy Bolt?
         | 
         | https://cleantechnica.com/2023/05/06/my-first-ev-part-iv-202...
        
           | ngngngng wrote:
           | Speaking as someone that's owned Chevy's and Tesla's
           | recently, if you're concerned about Tesla's quality, I would
           | steer clear of Chevy.
        
         | sofixa wrote:
         | Renault Zoe or Dacia Spring sounds right up your alley.
        
           | bestouff wrote:
           | I've got a Zoe. It's fantastic - simple, efficient, that
           | thing just works.
        
         | joezydeco wrote:
         | It's sad, but it's not a surprise. I'm a huge Mazda fan and
         | their first attempt at a BEV was pretty shitty. And consumers
         | figured it out really quickly.
         | 
         | https://electrek.co/2023/07/29/mazda-kills-off-mx-30-ev-in-u...
         | 
         | And the CEO is just clueless.
         | 
         | https://insideevs.com/news/698183/mazda-ceo-says-evs-not-tak...
         | 
         |  _I just want normal door handles and a satnav with buttons_
         | 
         | My mantra through this whole thing is "I don't want an electric
         | car, I just want a car that's electric". I found what I was
         | looking for in the XC40 Recharge, but I realize that's still a
         | really expensive car for this market. I'm with you on a Yaris
         | BEV.
        
       | DrNosferatu wrote:
       | Completely counterintuitive VW is so high on that list.
        
         | hef19898 wrote:
         | VW, the brand, has some very serious issues, not all of those
         | are related to EVs as they started much earlier.
         | 
         | VW, as in VAG the enterprise, is doing quite well with brands
         | like Skoda, Porsche and Audi.
        
         | csunbird wrote:
         | ID series, especially ID4, are a success. They are definitely
         | good cars, except for the entertainment system, which you can
         | replace with CarPlay.
        
         | jhallenworld wrote:
         | John Cadogan on VW...
         | 
         | https://youtu.be/u1UfDOLk8ic?t=2103
         | 
         | https://www.youtube.com/watch?v=hn0U55n7Vwg
         | 
         | https://www.youtube.com/watch?v=qjToFe1oAAI
         | 
         | He's anti-EV, but the main point is pretty good: cars from
         | different companies are all pretty much the same, so the next
         | thing you should look at is the company itself- will they help
         | you after the sale? Are they a good corporate citizen?
         | 
         | Oh, one more:
         | 
         | https://www.theguardian.com/business/2018/jan/29/vw-condemne...
        
         | jillesvangurp wrote:
         | Dieselgate basically. They got a rude awakening around that
         | time and accelerated plans to take EVs to market because they
         | realized that their diesel strategy was dead in the water. So,
         | they now have EV production capacity on multiple continents and
         | battery supply secured. Their first generation platform has
         | been a bit rough but they are selling cars built on it in
         | volume now directly and through companies like Seat. The
         | probably do so at a loss or with low margins. Which is
         | something they have in common with other struggling
         | manufacturers.
        
       | bryanlarsen wrote:
       | They've still got time given their reputation.
       | 
       | In 2024 it's borderline OK not to have an EV business. EV's are
       | 10% of the American market, 25% of the European market and >50%
       | of the Chinese market. The Chinese market is probably lost anyway
       | due to the insane local competition, so concentrating in 2024 on
       | the larger share of the market outside of China is reasonable.
       | 
       | Let's say that the flipover point is 2027.
       | 
       | And let's say it's 2027 and you're looking to buy an EV. You
       | narrow down your choice to a 3rd generation Tesla, a second
       | generation Ford or VW and a first generation Toyota or Honda.
       | Reliability is the deciding factor. What do you choose? Lots of
       | people are going to choose a Japanese brand despite any drawbacks
       | getting a "bleeding edge" model entail.
       | 
       | By not ramping up EV production gradually they're setting
       | themselves hard production and logistics problems. All new
       | production processes have teething problems, and they're a lot
       | easier to solve when production is in the 5 figures rather than
       | when it is in the 7 figures, but if anybody can solve hard
       | production and logistics problems it's probably Toyota.
        
         | raphaelj wrote:
         | I had the same thoughts a few years ago.
         | 
         | The winner will not be the first one to the market, but the one
         | at the right time with the best car on the market.
        
           | jillesvangurp wrote:
           | Actually neither. The best car is the one that you can
           | actually buy. That requires manufacturing, logistics and
           | supplies. The likes of Toyota have barely begun the process
           | of getting organized there. Even if they had an amazing EV
           | product (which so far they don't), they'd struggle to sell a
           | lot of them because they simply don't have factories, battery
           | supplies, etc. in place that they would need for that. And at
           | the scale they operate anything that doesn't sell in the
           | millions of units is not worth doing. Getting from zero to
           | there will take them quite a bit of time and money.
           | 
           | Which is why the winners in this market so far are Chinese
           | and Korean manufacturers. And Tesla. Unlike other
           | manufacturers they have manufacturing dialed in and a robust
           | supply line with batteries and other things they need. Their
           | main challenges are keeping up with demand and keeping cost
           | low while growing manufacturing capacity.
           | 
           | The pace at which this market is growing means that it is
           | getting harder for the likes of Toyota to break into this
           | market. The few EVs they have on the market are actually not
           | made by them and also a bit underwhelming. For example the
           | bZ4X is actually a BYD car with a Toyota logo. That might be
           | their future: leave the manufacturing to specialized
           | companies and simply milk the brand. They seem to still
           | insist they'll have their own drive trains and supposedly
           | amazing batteries. But so far there's little sign of them
           | building factories for those. Maybe that will work for them.
        
         | shellfishgene wrote:
         | Isn't it very likely that Chinese brands will also feature in
         | the decision? From my sporadic reading here and there it seems
         | they will be able to compete on price globally sooner rather
         | than later.
        
           | csomar wrote:
           | It seems that people are not able to process the shock for
           | the Chinese entrance to the automobile market. I have seen
           | the Zeekr. It's simply insane. The price is competitive. The
           | quality is competitive (I find it superior to VW and rather
           | competing with BMW/Audi). China also can build stuff at large
           | scale. Now, is it reliable for 5-7 years? That's still not
           | known but we are about to find out.
        
         | gjsman-1000 wrote:
         | > EV's are 10% of the American market
         | 
         | Ah, no. EV sales in the US are slowing with dealerships having
         | large amounts of unsold inventory, as documented below:
         | 
         | https://www.usatoday.com/story/money/personalfinance/2023/11...
         | 
         | https://www.cnbc.com/2023/11/01/why-dealers-say-ev-sales-hav...
         | 
         | The total percentage of _new_ cars being sold as EV is about
         | 7.9% in the US for Q3 2023.
         | 
         | https://electrek.co/2023/10/12/ev-sales-7-9-us-market-volvo-...
         | 
         | https://www.coxautoinc.com/market-insights/q3-2023-ev-sales/
         | 
         | That sounds great, until you realize that new car sales have
         | slowed significantly due to the economy and high interest
         | rates; meaning that wealthy people have outsized buying
         | influence at the moment.
         | 
         | https://www.marketplace.org/2023/03/06/new-car-sales-have-sl...
         | 
         | This has caused dealerships to warn Congress that they believe
         | EV purchase orders will decline in percentage when interest
         | rates decline and the middle class starts buying cars in
         | greater quantities again; making the Congressional recommended
         | deadline unfeasible.
         | 
         | https://www.teslarati.com/car-dealers-biden-ev-demand/
         | 
         | Despite the above, EVs and Plug-in Hybrids _combined_ register
         | as only 1.2% of all vehicle registrations in the United States.
         | 
         | https://www.visualcapitalist.com/visualized-ev-market-share-...
        
           | recursive wrote:
           | EV adoption is still increasing. The rate of increase has
           | decreased.
        
             | gjsman-1000 wrote:
             | Oh, no doubt, but the parent's comment about a potential
             | flipover in 2027; that is, in my opinion, with the sources
             | cited, wildly optimistic.
             | 
             | I am personally in the camp that believes, because of the
             | geographic area of the United States and people's families
             | (very different if all your friends live in Spain, and you
             | live in Spain, versus California to Chicago); EV adoption
             | in the US will be much more strained than Europe or China
             | (as in China, 60% of the population lives in 12 coastal
             | provinces and most of the family stays together). I could
             | see the US easily being a decade or more behind, not
             | because we're stupid or backwards or lazy, but because our
             | requirements are different.
             | 
             | For the US; I think Plug-in Hybrids are a _fantastic_
             | option that should be encouraged. They completely kill the
             | arguments or concerns about range anxiety; and, what,
             | 80%-90% of all miles travelled will be electric? Don 't let
             | _perfect_ be the enemy of _very good_ ; especially when far
             | more people would be willing to sign up. I think it's fine
             | and reasonable to get 80% of the way there with broad
             | adoption, wait a decade or so for EV technology to be even
             | better and go further to where nobody has concerns, and
             | then transition to 100%. Forcing people into premature
             | technology ruins first impressions and sets stereotypes
             | that will never die.
        
               | wnc3141 wrote:
               | Hard to pinpoint a year. It's nearly impossible to figure
               | the economic conditions in 2027 and determine if demand
               | for new cars will be high or if there will be heavy (and
               | high profile) investment in charging infrastructure.
        
               | bryanlarsen wrote:
               | Flipover in 2027 is highly unlikely in the US. Flipover
               | worldwide in 2027 is highly likely because China is a
               | much larger market than the US and has already flipped,
               | because Europe is way ahead of the US and because the
               | rest of the world is going to switch to $10,000 Chinese
               | EV's quite rapidly.
        
               | gjsman-1000 wrote:
               | > $10,000 Chinese EVs
               | 
               | That sounds like a safety nightmare.
        
               | bryanlarsen wrote:
               | They're a heck of a lot safer in crowded pedestrian
               | conditions than the typical US oversized SUV.
               | 
               | And the $8,000 BYD Seagull has passed European safety
               | testing for highway speeds.
        
               | gjsman-1000 wrote:
               | I meant in terms of fire; I'd be concerned that if Tesla
               | can't stop occasional spontaneous combustion, how about a
               | cheap Chinese EV...
               | 
               | > typical US oversized SUV
               | 
               | I actually don't know if people will go back from SUVs
               | even if there are better cars. They just feel
               | psychologically safer to the passengers and the large
               | cargo hold is convenient. If you took them away from
               | people, I think there'd be widespread anger at EV's
               | expense which is not needed right now.
        
               | bryanlarsen wrote:
               | A cheap Chinese EV uses LFP batteries, which have a much
               | lower fire risk than Tesla's nickel batteries. And
               | Gasoline cars have a 10X higher risk of fire than a
               | Tesla.
        
               | dalyons wrote:
               | Hybrids are much more complicated, and thus will be more
               | expensive all things being equal. Once EVs break out of
               | their current weird artificial premium only market
               | segment, and are available at their natural price points
               | like the cheap Chinese EVs, then they should be much
               | cheaper than hybrids. I suspect all these range anxiety
               | and geographic arguments will be proven irrelevant for
               | most people, once the cars are cheaper.
        
             | fh973 wrote:
             | I found it interesting that even in Norway, the total share
             | of EV is just below 25%. https://www.vox.com/future-
             | perfect/23939076/norway-electric-...
        
       | jeffbee wrote:
       | Weird since Yamaha pioneered the electric _bicycle_ more than 30
       | years back.
        
       | jrsj wrote:
       | Hybrid sales are way up, that's where the growth is going to be
       | the next couple of years. The strategy that everyone was calling
       | Toyota insane or even evil for is starting to make a lot more
       | sense looking at market trends.
        
       | epolanski wrote:
       | I think they are doing the right thing by waiting out.
       | 
       | They will reap a series of huge benefits:
       | 
       | - powertrain and battery technologies will get cheaper and more
       | reliable
       | 
       | - they will do much more money for the foreseeable future by
       | focusing on a very cost efficient market they already do well in
       | 
       | - they minimize the investments by having to experiment less
       | 
       | I think that many companies like Mercedes and Ford and Volkswagen
       | FOMOed into a premature EV transition blinded by the growth and
       | margins and Tesla. They are now finding out that EV demand isn't
       | as high as they thought and that even Tesla's growth and margins
       | is collapsing (and obviously will never recover with more
       | competition coming).
        
         | user568439 wrote:
         | In the other hand it's not that simple to catch up. Tesla has a
         | huge advantage in costs at the moment and the non-chinese don't
         | seem to be able to compete. Supply chain contracts of batteries
         | and new raw materials, software, efficient electric engines,
         | aerodynamics, battery management, software, charging stations,
         | vehicle platform design, cheaper manufacturing, trained
         | workers, experienced engineers...
         | 
         | There are a lot of elements and some will fall because they
         | waited too much. VW for example is having huge delays due to
         | software and also prices (even though in China they have no
         | problem selling the IDs for half price than in Europe...)
        
       | matthewfelgate wrote:
       | Will the entire car market transition to electric vehicles?
       | 
       | There's a possibility that this shift might result in a scenario
       | where only premium cars are electric, while a proportion remain
       | petrol-powered.
        
         | dalyons wrote:
         | That shouldn't be stable long term though, evs will be
         | fundamentally cheaper to manufacture
        
       | tsudounym wrote:
       | I don't know why Nissan isn't aggressively exporting the Sakura
       | and Note e-power, the Note especially has a gas engine fallback
       | that powers the battery (not the drivetrain) which should remove
       | range anxiety
        
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