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Chinese Electric Cars Are Twice as Expensive in Europe Compared to Their Home Market |
Contrary to the belief that China is conquering the global automotive market by slashing electric vehicle prices, recent reports reveal a different reality. According to Carscoops, Chinese automakers have been increasing the prices of their export models to maximize profits in international markets, with BYD leading this strategy.
This approach is a response to the price war in China, which has forced domestic electric car manufacturers to offer significant discounts on their vehicles, eating into their profit margins. To balance their finances, these automakers have chosen to increase the export prices of their cars. Carscoops noted that some of BYD’s popular models sold in Europe are priced up to three times higher than their domestic market prices.
A Reuters report further highlighted that the BYD Atto 3 and BYD Dolphin are sold in Europe at a premium of 81-174% and 39-178%, respectively, compared to their prices in China. For example, German customers need to pay over $37,000 for the BYD Dolphin, while Chinese customers only pay around $16,500 for the same model.
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BYD Dolphin. Image: BYD. |
Despite the price increase, Chinese cars are still generally more affordable than their European or American counterparts. Carscoops attributed this to the highly optimized production costs of Chinese automakers, which not only boost their profits but also give them a competitive edge in the international market.
According to Benchmark Mineral Intelligence, a market research firm, the cost of producing batteries in China is estimated to be 18% lower than in other countries. This advantage is further enhanced by the ability of some Chinese automakers, such as BYD and Geely, to manufacture their own batteries.
Additionally, the Chinese government provides substantial support to domestic automakers through land grants, tax cuts, reduced electricity prices, and lower labor costs. As a result, Chinese car manufacturers enjoy significant cost advantages over their European counterparts in terms of production expenses.
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Our Automotive section presents an array of captivating books with diverse themes. During those moments of relaxation and leisure on your journeys, let these books be your delightful companions.
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