New Study: Prices Are Much Cheaper, Electric Cars From China Are The Largest Threat Of Western Manufacturers

BYD became the first Chinese car manufacturer to participate in 47 years of the history of the Japan Mobility Show exhibition. (Doc. BYD)

JAKARTA - Chinese-made electric cars are a big obstacle for European manufacturers to attract the market because the price is much cheaper.

In fact, quoted from the Carscoops website, Monday, October 30, the average price of Chinese electric vehicles is less than half the average price of electric vehicles made in America or Europe, so the price gap continues to widen.

Based on a study conducted by JATO Dynamics, in the first half of 2023, the average EV price in Europe reached 70,462 US dollars, or around Rp. 1 billion, on the other hand, the price of Chinese electric vehicles was only half, namely 32,842 US dollars or Rp. 550 million.

Many factors have led to this price comparison, for example, manufacturers outside China are investing in expensive lithium-ion battery technology. As a result, most electric vehicles in the crossover and SUV segment tend to be premium. Meanwhile, in China, chemicals for batteries are much cheaper which means they can help lower the price of electric vehicles.

However, production costs are not the only factor. The Chinese government has provided subsidies for the purchase of electric vehicles significantly. Although US and European countries are also offering tax benefits, China's approach is more successful in developing industries that offer a variety of types of vehicles.

If sampled, consumers in the United States can choose 51 electric vehicle models and for Europe the total has reached 135 models. However, China is much more by offering up to 235 models, meaning there is an electric car selection gap, and not least the price is much cheaper.

Targeting the international market, Chinese car manufacturers do present electric vehicles at affordable prices with the aim of gaining a foothold in various markets or being offered cheaper than their competitors around the world.

However, there are some highlights of cheap electric vehicles from China, especially from the welfare sector of factory workers. Unlike in the US and Europe, which have strong unions so that workers' wages can be controlled, in China it raises questions about production ethics that cause losses to workers.