Traditional car manufacturers are getting hit after hit. I have previously explained how German manufacturers such as Volkswagen, Mercedes and BMW are struggling in China. Volkswagen's profits fell by 62% this quarter, the hits never end. But they believe they have a place to protect themselves. For example, Ford's place to defend itself seems to be the F150. There is also an electric model of the F150 called Lightning. They stopped its production. They say there is no demand for a certain period of time right now. Of course there is no demand because Tesla has the Cybertruck in America and it is killing the market. But more importantly, BYD is coming to that market. BYD is now becoming the most important player in the pickup market, which Ford has long dominated with the Ranger and Toyota with the Hilux. The sale price of this very stylish car in Australia is 39,000 dollars in US dollars. You have to compare this vehicle with Ford's Raptor, you have to compare it with the most loaded Toyota Hilux. Because the vehicle really has everything. This vehicle is a hybrid and it is magnificent, probably BYD is selling this vehicle at a loss now to get a share of the market. But I think a very important player is entering the pickup market. Now I will tell you a little about this vehicle, I will talk about its importance in terms of competition. But let there be no misunderstanding, I definitely do not have a collaboration with BYD. But how will things be affected? What impact could BYD have on Tesla? What impact could BYD have on traditional car manufacturers? Why is this pickup opening up a huge new battlefield? I will try to explain all of this to you.
First, let's look at the issue from a strategic perspective. BYD had not entered the pickup segment until now. It produces small-medium-sized cars and SUVs and is super competitive in this field, as you know. In fact, it surpassed Tesla's turnover for the first time in the last quarter. Of course, do not forget that Tesla only sells pure electrics, while BYD has both electrics and hybrids. The majority of its turnover comes from hybrids. But what I have said does not change the fact that BYD is a fiercely competitive player and as far as I understand, their strategy is to attack the most profitable segment held by Ford and Toyota. Ford Rangers are the dominant players in this sector in the United States and Toyota Hiluxes are behind them in the world, especially in small pickups. This is where BYD is attacking and comes with much more technological features at a much lower price than its competitors. Of course, the Toyota Hilux is a classic, and so is the Ford Ranger. They have proven themselves for years. BYD has a long way to go to prove itself. But when you learn a little about the features of the vehicle and relate this to its price, you will understand why it is a very serious player and why it is in such high demand.
BYD named its vehicle Shark, and it is a very appropriate name. Because it is a vehicle that will tear this market apart. It is a hybrid and has a range of 60 miles, roughly 100 kilometers, on electric power alone, and a 30 kWh battery. On the other hand, the vehicle also has a 1.5-liter 4-cylinder gasoline turbocharged engine. The sum of the two produces a lot of power. When we combine the electric motor and the gasoline engine, the vehicle has 320 kW, or approximately 460 horsepower, and with this it reaches a power of 650 newton meters. As a result, this shark can reach 0 to 100 in 5.5 seconds. This is a speed that neither the Ford Ranger nor the Toyota Hilux can dream of.
The vehicle also uses the advantages of being electric, there are charging points everywhere. For example, you can use these to power your tools at your construction sites. You can also charge your vehicle quickly at home with a 7 kW AC charge. The DC charge is 55 kW, which is quite powerful for a plug-in hybrid. The vehicle is larger than both the Ford Ranger and the Toyota Hilux, by the way, it is 5 to 10% larger. The bed in the back is much larger than the two, and while the Ford Raptor has a price tag of $100,000 in the US, this BYD shark is on sale for $39,000 in Australia, Thailand and New Zealand. Of course, it has not entered the US.
The interior of the vehicle also has a very luxurious 15.6-inch central touch screen. Moreover, this screen can be both horizontal and vertical. These are features we have not seen in other brands. There is a powerful 12-speaker sound system. There is wireless phone charging. It has various electrical outlet options both in the bed and inside to support your daily life, picnics and off-road. There are ventilated and heated seats. All standard safety equipment is available. There is rear collision warning. There is blind spot monitoring. There is front and rear cross traffic warning. To continue, off-road departure warning, off-road hold assist, smart cruise control, driver fatigue monitoring, surround view camera, front and rear parking sensors are also included in the package.
They give a 6-year or 150,000 km warranty for this vehicle. They give an 8-year or 160,000 km warranty for the battery and the vehicle is currently selling like hotcakes. BYD says they can't keep up with the demand. I'm not an automotive expert. I may have made a little mistake in the terminology. Please excuse me but we really have a superior vehicle and believe me this is a huge blow to Ford and Toyota. Because especially Ford's determination comes almost entirely from the Ford F150 and the Froto operation in Turkey. Losing the F150 is a huge blow to Ford. BYD cannot enter America right now but it will find a way eventually. But outside of America, BYD's Shark will take a serious market share in the huge Far East market. I think this will hit Toyota Hilux especially hard in that region.
BYD is super determined, BYD intends to dominate all markets. It can also tolerate losses for this. In fact, when we look at it, although its turnover was above Tesla's in the last quarter, its profitability was less than half of Tesla's. It is willing to accept low profits. Maybe even accept losses. I am sure that it has received great incentives from the government in this regard, but it is coming to dominate the market. My guess is that BYD will be the world's largest automobile manufacturer. When we come to around 2030, it will be very difficult for Europeans and traditional Americans to resist it. Toyota has its own power, of course, but if it loses market share in the Hilux, Toyota will also be in trouble. Remember, Toyota's Corolla, which was once the world's best-selling automobile, has also lost to Tesla's Model Y.
The course of events in the automobile sector tells us that Tesla will be the leader in pure electrics, and BYD will be the leader in all the remaining segments. It is also possible for BYD to beat Tesla in pure electrics. Because it also has more economical cars, etc., but Tesla stands out there with features such as fully autonomous cars and FST. What other companies have to defend themselves is really beyond me. This transformation in the automobile sector is actually very traditional. When new and stronger startups start to enter the market, traditional players try to escape to products in the upper price segments, as in Ford's pickup and F150. But then these new players start producing economical vehicles in order to dominate there. Volkswagen did this at one time, then Toyota did. Now it is being done to them and I think they have no way out, to be honest.
There are other aggressive players in China besides BYD. For example, Ford's CEO has been using Xiaomi's vehicle for a long time and expresses his admiration for the vehicle. In other words, there are great improvements in the quality of the vehicles and what the vehicles do. I am sure some of you will say here, but the Toyota Hilux is something completely different. Yes, of course, but this $39,000 Toyota Hilux is much more expensive and many features of this vehicle are much higher than the Hilux. The developments are really interesting, I continue to follow with curiosity.
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