Years ago, Chery CEO Yin Tongyue was involved in a CKD project that used components imported from Germany. During an inspection, a German quality engineer discovered that several damaged parts had been repaired and reused. On the spot, the engineer broke down in tears — not out of anger, but heartbreak. He believed the act…
Review
Why BBA’s Reliability Crisis Is Accelerating Their Fall in China
For years, BMW, Mercedes-Benz, and Audi — the “BBA” trio ruled China’s premium car market. Their names stood for precision engineering and German craftsmanship. But that story is breaking down fast. Today, BBA faces declining sales, shrinking market share, and a growing reputation problem — and reliability is at the heart of it. ⚙️ The…
Xiaomi vs. BYD: A Tale of Two Strategies in China’s EV Market
China’s EV market is no stranger to fierce competition. But today’s most interesting rivalry is between two very different players: 🔹 Xiaomi Auto – the newcomer. Best known for smartphones, Xiaomi entered the EV market in 2024 with the SU7 sedan. Demand has been strong—over 300,000 deliveries by mid-2025. Its strength lies in software integration,…
How Lei Jun Handled the SU7 PR Crisis: A Masterclass in Strategic Silence?
On March 29, a serious accident involving the Xiaomi SU7 made headlines and sparked wide online debate. If you follow Lei Jun on Weibo, you may have noticed something striking: – April 1: He made a single brief remark addressing the incident. – Then, complete silence. – April 5: He posted again, but only to…
Why Xiaomi Fake the exhaust sound for SU7?
Electric vehicles (EVs) are quiet by nature– No engine revs, no exhaust growl. For many, that silence is a feature. For others, especially enthusiasts, it feels like something is missing. That’s why EV makers are becoming sound designers. In traditional internal combustion engine (ICE) cars, the sound of acceleration – The rising RPM, the growl…
How to Build a New EV Factory in China
China’s automotive industry is grappling with a growing overcapacity problem as the nation accelerates its transition to electric vehicles. Despite building out more than 20 million units of annual production capacity for new energy vehicles (NEVs), the phaseout of traditional ICE vehicles has barely kept pace. Estimates suggest that only 2 to 3 million units…
General Motors Bets on Share Buybacks, Tesla Focuses on Growth
General Motors Co. and Tesla Inc. have taken divergent approaches when it comes to returning capital to shareholders, highlighting contrasting strategies that could shape their long-term market positions. General Motors: Rewarding Shareholders Detroit-based General Motors has leaned heavily on share repurchases and dividend increases to boost shareholder returns. In February 2025, the automaker announced a…
The Harsh Reality for Startup EV Makers
The early days of excitement around startup EV manufacturers like Lucid and Rivian have given way to a tough reality. As the chart below shows, their stock prices have plummeted since their initial highs, driven by production struggles, supply chain challenges, and the capital-intensive nature of the automotive business. Building a new car company from…
Xiaomi’s Car Ecosystem Strategy: A Tech-Driven Mobility Revolution
1. Introduction: Xiaomi’s Entry into the EV Market Xiaomi has successfully entered the electric vehicle (EV) market with the SU7, officially launched in March 2024. This move aligns with Xiaomi’s long-term strategy of creating a seamlessly interconnected ecosystem, where its cars serve as an extension of its smart home, mobile devices, and AI-powered services. Unlike…
Can Huawei Save the Chinese Legacy Car Makers?
Huawei is playing an increasingly critical role in the transformation of China’s legacy automakers, but whether it can save them is a more complex question. How Huawei is Helping Chinese Legacy Automakers Challenges & Limitations Conclusion Huawei is not a savior, but it is a powerful accelerator for Chinese legacy automakers looking to modernize. Success…