And, a recent tour of one of the Asian powerhouse’s vehicle plants has proved this beyond a shadow of a doubt, at least to Honda President and CEO Toshihiro Mibe.
“We have no chance against this,” Mibe said upon a visit to a Shanghai parts factory, commenting on its seamless automation across all levels of production. Logistics, procurement and all aspects of the process were so automated, in fact, that he did not spot a single human worker on the supplier’s floor.
Ford executives saying even three years ago that China was way ahead of the game
Toyota’s CEO has likewise said regarding not just his company, but the industry in general, “unless things change, we will not survive”
The CCP didn’t just subsidize cheap cars. They built out the manufacturing capacity to produce them at scale.
As China’s demographics shifted and long-term labor supply came into question, they leaned heavily into automation and industrial efficiency.
That’s the real reason these cars are so inexpensive. It’s not just lower prices, it’s a fundamentally different cost structure driven by scale, integration, and advanced manufacturing.
What’s unsettling competitors isn’t cheap cars themselves.
It’s the ability to consistently produce cars more cheaply than anyone else.