BYD, a Chinese company, has overtaken Tesla as the world’s largest seller of electric vehicles, thanks to long-term strategic thinking and support from the Chinese government. The government has provided an estimated $30 billion in tax exemptions and subsidies to the industry since 2010, and BYD has been a major beneficiary. BYD’s cars are also significantly cheaper than Tesla’s, with prices starting from $10,000, and it sells more of its cheaper models. The company’s vertical integration, which allows it to make 75% of its parts in-house, including batteries, has also helped reduce costs. BYD’s focus on cheap taxis and buses initially drove down battery prices, making them more affordable for passenger cars. The company is now expanding globally, but faces challenges such as regulatory uncertainties and brand awareness.
Vocabulary List (Content Related):
| Word | Definition | Example Usage |
|---|---|---|
| Vertical | Relating to something that is high or at a higher level | BYD’s vertical integration capability gives it flexibility and faster response to market trends. |
| Carrot | A tempting offer or advantage | China takes a carrot and stick approach to encouraging electric vehicle production. |
| Sticky | Relating to a situation that is difficult to change or overcome | The pandemic caused supply chain chaos, making it difficult for automakers to adapt. |
| Flagship | The most important or leading product or service | BYD’s flagship model, the Seal, is its most popular electric vehicle. |
| Compactly | In a small or neat way | BYD’s lithium-iron-phosphate batteries are packaged more compactly than other batteries. |
| Core | The most important or central part of something | Chemistry is a core expertise of BYD’s founder, Wang Chuanfu. |
| Flashier | More showy or attention-seeking | BYD’s founder, Wang Chuanfu, is far from one of the flashier executives in the auto industry. |
| Rise | To increase or become more prominent | BYD has risen to become the biggest seller of electric vehicles. |
| Uncertainties | Situations that are not clear or certain | The European Union is investigating Chinese EV subsidies, causing regulatory uncertainties for BYD. |
| Localization | The process of making something suitable for a particular place or region | BYD plans to increase localization in Europe to avoid regulatory issues. |
- BYD has overtaken Tesla as the world’s largest seller of electric vehicles.
- The Chinese government has played a huge role in BYD’s rise, providing tax exemptions and other incentives.
- BYD’s approach to electric vehicles is different from Tesla’s, focusing on cheaper models and vertical integration.
- BYD’s battery technology gives it a technological edge over some rivals, and it uses lithium-iron-phosphate batteries.
- BYD is expanding globally, but faces challenges such as regulatory uncertainties and brand awareness in new markets.
Vocabulary Quiz
1. What does the phrase “carrot and stick approach” mean in the context of the article?
- Offering both rewards and punishments
- Using only punishments
- Using only rewards
- Having no approach at all
- Being neutral
2. What is the main reason why BYD can sell its electric vehicles cheaper than Tesla?
- Because it has a better marketing strategy
- Because it has a more efficient production process
- Because it makes most of the components itself
- Because it has a better design
- Because it has a stronger brand
3. What is “vertical integration” in the context of the article?
- Making most of the components of a vehicle oneself
- Buying all the components from suppliers
- Assembling the vehicle in a vertical position
- Having a vertical management structure
- Using only vertical marketing channels
4. What is the significance of BYD producing its own batteries in-house?
- It allows BYD to control its own destiny
- It makes BYD dependent on suppliers
- It has no impact on BYD’s business
- It only affects the quality of the batteries
- It only affects the price of the batteries
5. What is the main challenge BYD faces in its global expansion?
- Regulatory uncertainties and brand awareness
- Only regulatory uncertainties
- Only brand awareness
- Competition from established carmakers
- Lack of investment
Answer Key:
1. Offering both rewards and punishments
2. Because it makes most of the components itself
3. Making most of the components of a vehicle oneself
4. It allows BYD to control its own destiny
5. Regulatory uncertainties and brand awareness
Passive Voice:
The grammar point for today’s lesson is the use of the passive voice in complex sentences.
In the passage, we can see several examples of the passive voice being used to describe the actions of the Chinese government and BYD:
- The Chinese government has given an estimated $30 billion of tax exemptions to the industry since 2010, and may wave a further $97 billion by 2027. (Here, the subject “the Chinese government” is performing the action of giving tax exemptions.)
- BYD has been a massive beneficiary of that. (Here, the subject “BYD” is receiving the action of being a beneficiary.)
- They have very cheap models starting from $10,000. (Here, the subject “they” is performing the action of having cheap models.)
The passive voice is used to emphasize the action rather than the doer of the action. It can make the sentence more concise and formal. However, it can also make the sentence less clear and more difficult to understand.
Let’s practice using the passive voice in complex sentences with the following exercise:
1. The new employee ____________________ by the HR department yesterday.
A) was interviewed
B) has been interviewing
C) is interviewing
D) interviews
2. The company’s financial reports ____________________ by an independent auditor every year.
A) are auditing
B) have been audited
C) are being audited
D) audit
3. The new policy ____________________ by the management team last week.
A) has been announced
B) was announcing
C) is announcing
D) announce
4. The research findings ____________________ by a team of experts from several universities.
A) are being analyzed
B) have been analyzed
C) analyze
D) were analyzing
5. The new product ____________________ by our marketing team next month.
A) is being launched
B) has been launched
C) launch
D) was launching
Answer key:
1. A) was interviewed
2. C) are being audited
3. A) has been announced
4. A) are being analyzed
5. A) is being launched
