Japanese carmakers pay $6,000 to study one Chinese car
Nikkei BP, a Japanese technology publisher, sells a 494-page teardown of the BYD Seal for ¥880,000, about $6,000. Japanese carmakers and suppliers buy it. Forty years ago, the world bought books about Japanese factories.
The book found an eight-in-one power unit, a battery built into the floor, and very few control units. Each part BYD merges is one less supplier to negotiate with and one less test to wait for.

A new Chinese car takes about 19 months
Reuters puts the traditional time from concept to launch at about five years. In 2025 the engineering firm AVL measured today’s carmakers for Nikkei. China’s electric-car makers took about half as long as Japan and Europe.
China means its electric-car makers. Source: AVL Japan via Nikkei xTECH, 2025.
Other estimates agree within a few months. They differ on when the count starts and stops.
| Source | Fast | Traditional |
|---|---|---|
| Science, 2025 | 18 | Nearly double |
| McKinsey, 2025 | About 24 | Up to 45 |
| AlixPartners, 2024 | 20 | 40 |
| Bain, 2025 | 24 to 30 | 48 to 54 |
Chinese carmakers cut the time in steps
Chery’s published process takes about 35 months. GAC says it went from 26 months to 18 to 21 after it adopted integrated product development (集成产品开发, jíchéng chǎnpǐn kāifā), the method Huawei uses. GAC also reports R&D costs down more than 10%.
Japan’s carmakers revealed 34 new models in 2025. Approvals in China for the year to October 2025. Sources: AlixPartners, 2025; JATO via Rest of World; Reuters.
Almost all the time saved is in design and testing
McKinsey splits development into three stages. The stages that prepare the factory barely change. The design and validation stage shrinks by almost two-thirds. Chinese carmakers decide much sooner that a design is ready.
| Stage | Global | Chinese |
|---|---|---|
| Design and validation | 28 | 10 |
| Engineering and tooling | 7 | 5 |
| Industrialization | 10 | 9 |
| Total | 45 | 24 |
Source: McKinsey, 2025.

Chinese carmakers test on computers first
Chinese electric-car makers run about 65% of their tests on computers, against 40 to 50% at Western carmakers. They build about half as many physical prototypes. Zeekr says it checks a turn signal in software in about 30 minutes.
The idea comes from Toyota. In 2000 Stefan Thomke and Takahiro Fujimoto called it front-loading: Toyota found about 80% of its problems by the end of detailed design.
Software updates let a car change after launch
Chinese carmakers keep software separate from hardware. A car can launch with its software unfinished and improve through updates sent over the air. During joint work on the bZ3, Toyota engineers were reported to be “flabbergasted” at how readily BYD made major design changes late.
Sources: Chinese industry analyses, 2025. AlixPartners puts the gap at up to 20 times.
BYD makes about three-quarters of its own parts
When the battery, motors and electronics come from your own divisions, nobody waits on a supplier. ITIF found a supplier design change takes 2 to 3 months in China and 3 to 4 years in the West. Zeekr says its engineers search 20 years of Geely designs for an existing part before they draw a new one.
Sources: UBS teardown and AlixPartners for BYD; Tesla Model 3 and VW ID.3 teardowns.
Rhodium Group compared a BYD Seal with a Tesla Model 3. Of a cost gap of about $4,700 per car, it credits $2,369 to making parts in-house and $292 to government subsidies.

Part of the speed comes from long hours
Chinese carmakers also put more engineers on each car, and those engineers work long weeks. Six days a week, about 12 hours a day, is normal in Chinese electric-car engineering. Zeekr hands work between Shanghai and Gothenburg so that a project moves about 20 hours a day.
Sources: BYD 2024 annual report via Sina Finance; Nikkei.
In 2021 a 35-year-old BYD worker died suddenly after a month with 26 shifts of nearly 12 hours. Lean calls this overburden (無理, muri). A system that depends on it carries a cost it has not removed.
Suppliers and buyers carry part of the cost
In June 2025, 17 carmakers promised to pay suppliers within 60 days. A year later, investigators found most still paid much later, often with commercial notes, a promise to pay at a future date.
Quality shows strain too. BYD recalled cars for battery defects, and regulators now require carmakers to file software updates before they send them. Teardowns do not find cheap cars, though. Caresoft found “no corners cut” in the $12,000 BYD Seagull. The risk is uneven quality and failures that only show up after years.
Sources: Sina Tech, July 2026; electrive, 2025.
Japan held the same lead in the 1980s
In the 1980s Kim Clark and Takahiro Fujimoto studied 29 car projects at 20 carmakers. Japanese projects took about two-thirds of the time of American ones and half the engineering hours: 1.7 million against 3.4 million.
Detroit first blamed culture. The study found method: a chief engineer (主査, shusa) with real authority, design steps that overlapped, and suppliers who engineered their own parts. US carmakers adopted the method and caught up by the mid-1990s. Chrysler developed the Neon in 31 months.
29 projects at 20 carmakers, measured by Clark and Fujimoto.
The US closed the gap within a decade. Chrysler built the Neon in 31 months.
Japan now sits where Detroit sat. China sits where Japan sat, further ahead.
1980s and 1990s: adjusted lead time and engineering hours from the Clark, Fujimoto and IMVP studies, via a 1996 US Office of Technology Policy report. 2020s: AVL Japan via Nikkei xTECH, 2025, measured differently, so compare the pattern rather than exact months.
Rival carmakers are now learning the method
Nikkei reports that Nissan is bringing the Chinese method back to Japan, a reverse import (逆輸入, gyaku yunyū). Other carmakers are doing the same.
- Toyota
- Chinese chief engineers now lead its China models. The bZ3X uses a GAC platform with about 90% local parts.
- Nissan
- The N7, led by partner Dongfeng, took 24 months instead of the usual 50 to 60.
- Volkswagen
- Bought 4.99% of Xpeng. VW says their first joint car took 24 months, over 30% faster than its norm.
- Ford
- Set up a 100-person team in Long Beach, California, to build a low-cost electric car.
- Stellantis
- Invested in Leapmotor and sells its cars outside China.
Sources: Toyo Keizai; Electrek; Nikkei xTECH; VW Group; CNBC; Stellantis.
Japan’s lead in the 1980s lasted until its rivals studied the method. These carmakers are now studying China’s.