The Japanese have revealed the secret of how cheap Chinese electric vehicles are – they have very few spare parts

Recently, an unusual exhibition of Chinese electric vehicles opened in the central region of Japan, Chubu, with more than a dozen cars disassembled down to the smallest screws. The event was open to Japanese parts manufacturers, and they were shocked at how few parts there were in each of the exhibits. This is one of the secrets of low prices for Chinese cars, but there were other revelations.

BYD ATTO 3 electric car disassembled. Image source: Ryohei Shimizu / Nikkei

The exhibition was organized by Sanyo Trading. She collects data on the configuration of conventional and fully electric cars for the American analytics company Caresoft. When all the data was transferred to the customer, Sanyo Trading decided to organize an open exhibition so that Japanese manufacturers of spare parts and cars could visually familiarize themselves with the products and working methods of Chinese competitors.

Reportedly, the regional authorities organized a special training session with a tour of the stands for about 70 auto parts manufacturers. Among the models that attracted particular attention was the BYD ATTO 3 electric car, which went on sale in China in February 2022 at a price of about 140,000 yuan (about $20,000 at current exchange rates). As of March 2023, BYD ATTO 3 has sold 300,000 units worldwide.

When disassembled, the ATTO 3 electric car amazed Japanese experts with its high content of super-integrated components. For example, the e-axle electric drive consists of eight parts, including a motor, inverter and gearbox, as well as an integrated charger and DC-DC converter. This approach reduced costs and weight. But this is only one element of BYD’s success. The company also uses the same components in several models, as well as benefits from increased production scale. It is these three key secrets that have become a revelation for Japanese auto parts manufacturers, but whether they can repeat this success is a big question.

«Chinese manufacturers are prioritizing cutting costs as much as possible, said a Sanyo Trading spokesman. “They have a different approach to quality than Japanese manufacturers.”

«“I was shocked by how few spare parts are contained in BYD and Tesla cars,” a Nissin Precision Machines manager who was present at the event commented on what he saw. “We want to use our experience to advance the electric vehicle sector.”

To date, the event has been attended by a total of more than 6,000 people from 450 companies. The exposition is regularly updated, and at the end of October it is planned to add four new models, including Li Auto L9 and Hyundai Ioniq 6. Currently, 16 models of electric vehicles with more than 90 thousand spare parts are presented there. In addition to the “Chinese”, there is a disassembled Tesla Model Y at the exhibition.