Case of Innovator's Dilemma.
This YouTube video talks about China's lead in EVs and batteries
see https://www.youtube.com/watch?v=TjxKu_WQoBU
tl;dw:
- china - have 3.5x more than global battery capacity need for 2025
- china - evs cost less than ice cars
- shenzen - 5-6 yrs ago - transition to 100% ev bus and taxis
- china - 2024 - ev & phev - 47.6% of total car sales
- 2023 car sales - china: 21.7M, USA 16M, EU 10.6M, JAP 4.7M
- 2024 - china owns more than 80% production of every part of battery
- TSLA - relies on China for 40% of battery supply chain
- massive investment in battery and materials since 2000
- chinese govt vehicles, taxies, buses -> evs
- chinese govt - massive incentives for consumers - priority parking, green license plates receive almost immediately for low cost
- but only for cars that use chinese batteries
- researchers - china spent 200-300 billion on ev subsidies alone
- domestic car companies want to milk existing ice technology
- car maker's worker unions don't want to ditch ice car manufacturing for possibly less work
- local politicians don't want to push car makers, cause disruption
The only way out of the quicksand is for each local govt to create a temporary moat and force their local car companies to catch up using local suppliers (who also have to catch up with Chinese component makers).
But that's not gonna happen overnight.
And those local car companies aren't run by software people - the engineers at the local car companies are probably mech eng trained or finance/marketing types.