The Impact of China’s EV Boom, Explained | WSJ

Published 2024-05-17
Chinese car companies like BYD are ramping up EV production and are already flooding Europe with cheap and advanced models. The U.S. is now worried that the flood of automobiles will soon reach American shores and hurt domestic automakers. Elon Musk warned these companies will “demolish” global rivals like Tesla if trade barriers are not put in place.

WSJ’s Yoko Kubota traveled to China’s eastern city of Hangzhou to visit an EV graveyard.

Chapters:
0:00 China’s EV graveyards
1:11 Overcapacity
2:28 Beijing Auto Show 2024
4:17 Takeaways

WSJ Explains
News moves fast, and there's not always time to untangle the complex forces driving the day's biggest stories. WSJ Explains breaks down big market moves, business and economic trends, and scientific developments to help you stay ahead of the curve.

#China #EV #WSJ

All Comments (21)
  • @wanglius
    Ask anyone living in Hangzhou and you can get the answer. Untill 10 years ago, the Chinese gov was promoting EV manufacturers with credits they could basically use as cash. But the subsidies were only available when an EV was actually sold. So the manufacturers set up fake rent-a-car companies and purchased their own electric cars at unreasonably high prices, only to get the creadits. Many of those "sold" EVs didn't even have their batteries installed. The gov quickly found out about this scam and changed the subsidy system, leaving those EVs in graveyards.
  • OMG, Anglosaxon medias tried so jard to undermine world' EV cars. U know EV cars weren't blue Plat but green plate in China
  • @yvesgomez
    So many oil promoters care about environment when talking about EVs.
  • @rajathapa6155
    Do some research WSJ, at least do not show blue badge car which is a ICE vehicle so that you can be more successful in scaremongering.
  • @user-lz2xz4xm2k
    Interesting. The car that appears in the video has a blue license plate, so it is a gasoline car, and only cars with green license plates are EVs.
  • To replace a Tesla battery is 22k to buy a new Seal from BYD is 10k yea they should be worried
  • @jasonzhou6437
    Blue plates are ICE vehicles… u went to the wrong graveyard lol
  • @kevinliao3657
    As pointed out in the comment, the blue plates of these cars suggest these are either ICE vehicle or an early EV produced before 2016. Additionally, these EV models are mostly for commercial use.
  • @yahoochong2324
    You filmed a car rental company's parking lot and a 4S dealership's parking lot, and then told you that this is a cemetery. The blue license plate vehicles of the car rental company are owned by the famous Chinese Uber "Didi" company, while those vehicles that are not registered are the new car storage areas of BYD dealers
  • @GD-8
    So according to the plates shown in the video, the WSJ either reported about a dump with gasoline cars, or really old EVs from 8+ years ago. The year where iPhone 7 was the newest iPhone in the world. That's some horrible journalism...
  • @hongyu-he
    This is a scrapped taxi, which has usually traveled hundreds of thousands or even millions of kilometers.The law requires compulsory scrapping.
  • @kwoklung
    Apparently blue license plates are ICE vehicles, WSJ are amateur journalists.
  • @user-up3pz5lk3z
    i spotted many cars in the scenes with blue license plates assigned to gasoline car, which means these were gasoline cars instead of EVs. EVs were assigned green license plates instead in China.
  • @rocky137
    The blue registration plates on those cars means that those are ice cars, not EVs.
  • @rahuladduri6562
    the blue license plates are ice or hybrid only....bev are under green licensed plates....
  • @nicholas2275
    As a Canadian I want to buy a cheap EV, not a triple priced American one. Ohh wait. We don't have any power stations any way
  • @MircoWilhelm
    Most of these cars already have been used. As seen in the footage they were former taxi and ride hailing startup cars.
  • @novon04
    Most of the cars in the "graveyard" seem to be Chana Eulove EV. From Wiki: As of 2018, the Eulove EV is packed with a 34.6 to 43 kWh battery with a range of 252 to 315 kilometers. The Internal combustion engine version was discontinued after the 2015 model year while the electric version was available to car sharing platforms throughout 2018 with a price range of 158,000 to 159,800 yuan. The cars are problably from a defunct car sharing company.
  • @willz229
    Weird narrative. Just like planes, cars are durable goods, and by nature, their salvage value ends up in graveyards. Your average ICE car should be swapped every 6-10 years, which is roughly a 10.0-16.7% replacement rate. There's nothing particularly special about EVs. Now, if you're saying that the replacement rate is way faster, I haven't seen the data that backs this narrative. Cars aren't that cheap, and even with rebates, the average consumer cannot switch at a faster rate due to income constraints. After all, the bulk of funds come from the consumer. Also, it's said to be waiting to be sold—that's the definition of inventory, not graveyard. Oh well, clickbait titles do get views, and even journalists need to eat, but try harder next time.