Welcome back to the latest episode of The Future of Automotive on CBT News, where we put recent automotive and mobility news into the context of the broader themes impacting the industry.
I’m Steve Greenfield from Automotive Ventures, and I’m glad that you could join us.
One of the biggest themes in the automotive space over the past year has been the rise in prominence of the Chinese automakers. Not only have the Chinese leapfrogged the U.S. to become the largest new car market in the world, they’re also now the biggest exporter of new cars, globally.
And one Chinese automaker in particular is becoming more and more of a household name.
After increasing its annual sales in China over 15 times to 3 million cars in only three years, BYD is now exporting to roughly 95 markets, including 20 new ones just this year alone.
The company is building, has recently opened or has announced plans for assembly plants outside China in 10 countries on three continents.
The speed and scope of BYD’s aggressive expansion has caught the global auto industry off guard and triggered protectionist tariffs in the U.S. and EU, where policymakers fear Chinese players will, in the words of Elon Musk, “demolish” their domestic automakers.
And the rest of the world is wondering how on earth the Chinese can build electric cars so cheaply.
BYD’s cheapest EV, the Seagull, starts at under $10,000 USD in its home market.
BYD is able to offer vehicles at such a low cost because it makes most of its components in-house.
Back here in the USA, maybe the one (and only) issue that our two presidential candidates can agree on is to impose draconian tariffs to keep Chinese automakers like BYD out of the US market, to protect both domestic automakers as well as their dealer networks.
But prohibitively high tariffs are only a short-term, temporary Band-Aid to hold off the existential threat of the Chinese entering the market.
Some believe that the United States is squandering its best opportunity to compete in the global battery race.
China jumped to a commanding lead in the last decade, locking up the supply chain for lithium-ion batteries, which power everything from cell phones, to military drones, to electric vehicles (EVs). By passing ambitious legislation under U.S. President Joe Biden, Washington has begun investing heavily in its domestic battery industry.
But even significant funding won’t get the job done if it isn’t directed at the right target: securing U.S. supremacy in next-generation technology, solid-state batteries.
U.S. companies and research institutions are on the cusp of commercializing next-generation batteries that far surpass the performance of today’s lithium-ion batteries in safety, longevity, and energy density. And with scaled-up production, these batteries would eliminate dependence on Chinese-produced graphite.
If the U.S. automakers sit idle, behind a false sense of security from huge import tariffs, while in the meantime the Chinese overrun the rest of the world’s auto markets, this story won’t end well.
I believe it’s only a matter of time before the barbarians are at our gates find a way into the U.S. market with cheap, high quality Chinese vehicles.
The U.S. must feel an intense sense of urgency to leverage the short amount of time these tariffs will afford them to double down on good old American innovation to ensure that the legacy automakers, and their franchise dealer networks, remain relevant for the next 100 years.
So, with that, let’s transition to Our Companies to Watch.
Every week we highlight interesting companies in the automotive technology space to keep an eye on. If you read my weekly Intel Report, we showcase a company to watch, and take the opportunity here on this segment each week to share that company with you.
Today, our new company to watch is Brilliant Harvest.
Brilliant Harvest is an AI-powered Helpdesk built to empower equipment dealer teams across the entire customer experience (CX), from purchase to repair.
Brilliant Harvest’s vision for the modern Equipment Dealer reduces demand on people so that they can cultivate deeper relationships with your customers.
Brilliant works alongside your team to provide a seamless experience that will delight your customers. It streamlines communication so that you can intercept if an only when a human touch is needed.
Brilliant Harvest provides technology that seamlessly integrates with your dealership, facilitating the digitalization of your customer experience (CX) to ensure it fits your business’s unique workflow.
Brilliant isn’t about replacing the human touch. It’s about empowering dealer teams by streamlining workflows to reduce the demand on people—especially during busy seasons.
Let Brilliant’s AI handle repeat questions and quick inquiries while allowing you to step in when human connection is called for.
If you’d like to learn more about Brilliant Harvest you can check them out at www.BrilliantPowered.com
So that’s it for this week’s Future of Automotive segment.
If you’re an AutoTech entrepreneur working on a solution that helps car dealerships, we want to hear from you. We are actively investing out of our DealerFund.
If you’re interested in joining our Investment Club to make direct investments into AutoTech and Mobility startups, please join. There is no obligation to start seeing our deal flow, and we continue to have attractive investment deals available to our members.
Don’t forget to check out my book, The Future of Automotive Retail, which is available on Amazon.com. And keep an eye out for my new book, “The Future of Mobility”, which is almost done, and will be out soon.
Thanks (as always) for your ongoing support and for tuning into CBT News for this week’s Future of Automotive segment. We’ll see you next week!
