They are the largest product experiment in the world
Tu Le, founder of Sino Auto Insightshe explained in the podcast High Capacity How what Toyota took 36 months or more to develop (from design to production), companies like BYD or XPeng complete in 12 or 16 months. Modular platforms, digital simulations, OTA updates… all of this has replaced classic industrial processes. And they test features that almost no Western manufacturer would dare to include. Why is it important. What Toyota took three years to develop (design, prototype, validate, produce…), companies like BYD or XPeng execute in just over a year. And without reducing quality. What they do is change the process: They use modular platforms that stretch without redesigning everything. Digital simulations instead of physical prototypes. And software updates that improve the car after purchasing it, as Tesla already marked the rest of the industry. It’s a real-time product experiment. If a feature is unused or buggy, they send an OTA update after a few days. If a model is not selling well, they update it in 12 months. It is the logic of consumer electronics applied to the car. In detail. Chinese cars incorporate features that in the West might seem absurd or reckless. BYD, for example, sells models with drones on the roof that can fly out following us. NIO installs chips whose performance is disabled for months until an update activates them, which serves to increase the value of the car over time instead of simply depreciating it. They are proposals that reflect that they understand a consumer much younger than the average Mercedes buyer in Europe, hyper-digitized and accustomed to everything responding instantly. BYD’s ultra-fast charging promises times “as fast as refueling gasoline”. XPeng and NIO assisted driving systems They already operate on long-distance trips with minimal driver intervention. The aforementioned Tu Le and his colleague Lei Xing drove from Beijing to Shenzhen using the XPeng system for 90% of the trip. They then repeated the route on a NIO using only battery swapping. Both experiences worked. Between the lines. The founders of these companies do not come from the automotive world. Li Xiang (Li Auto), Li Bin (NIO) and He Xiaopeng (XPeng) come from the world of the Internet and apps. When they decided to make cars, they didn’t start thinking about factories or supply chains. They thought about user experience, interface and functionality. Then they learned to manufacture from that. This change in the process explains a lot: a traditional manufacturer begins to optimize thinking about industrial efficiency, one born in technology optimizes for the user and then decides how to take that to production. The context. China sold 25 million vehicles in 2025. One in every two was electric or hybrid: more than 12 million units. In that mass market, any product experiment has instant and scale feedback. If something works, it is replicated within weeks. If it fails, it is corrected just as quickly. BYD went from 700,000 units six years ago to 4.6 million in 2025manufacturing its own chips and batteries. Vertical control that allows you to iterate faster than any competitor dependent on external suppliers. And now what? Volkswagen invested in XPeng and will launch vehicles based on its platform this year. Stellantis bought 19% of Leapmotor in 2023. Ford licensed battery technology from CATL in 2022. They are implicit recognitions that the Chinese experiment works and the West needs to learn from it. Renault directly went there Learn how to build a cheap electric car in a short time. The question is not whether Chinese cars are better, but whether the rest of the industry can adopt this model of accelerated development without breaking everything built over a century. In Xataka | The year of Chinese consolidation in Spain: MG, Omoda and BYD close a spectacular 2025 and are among the best sellers Featured image | XPeng