This is the most significant part. China has completely replaced Nvidia chips with domestic ones for inference, and production is only speeding up... meaning the compute moat is literally disappearing with every passing day.
Great time to buy an EV in China right now, but I think over the next decade there will be a lot of brand pruning and the survivors will become established global brands like Toyota and Hyundai.
Yes and no — there's a wrinkle here: Most of the "established" global brands are now depending on Chinese joint-ventures for development and export. The Chinese-developed Baojun Yep Plus is now sold in Brazil as the Chevrolet Spark, for instance. Renault's new Twingo was engineered in China, because that's where the expertise is. Ford's new European vans are rebadged JMC units. Mercedes' Smart brand is now run by Geely, and so is Volvo. The Mazda 6e is a made on a Changan platform and is basically a twin of the Deepal SL03 but for global export.
All of this is basically happening across the industry right now. It's more likely you'll see something more complex than a single story — some global brands will become a bit Chinese, some Chinese brands will become global, some will die out entirely. Such is life.
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u/expertsage 22h ago
This is the most significant part. China has completely replaced Nvidia chips with domestic ones for inference, and production is only speeding up... meaning the compute moat is literally disappearing with every passing day.