My biggest issue with the subsidies is the fact that Chinese EV’s aren’t all that cheap. Not only do they double in price when they get to Europe, but they are usually priced almost on par with their EU competitors
The market sets the price based on supply and demand. This principle is at work in China, too. But there demand cratered when subsidies ended and there is way too much supply, because lots of startup OEMs got cheap loans to set up production facilities. The chinese car market is a complete bloodbath, with pretty much everyone just trying to survive longer than the others. Hence it’s no surprise that the same car is sold much cheaper in China than in Europe.
It’s cheaper even without the price war. A combination of lower labour costs and economics of scale make Chinese EV’s cheaper in general and shipping costs, tariffs and dealer markups make them more expensive in Europe. This is also likely combined with the assumption that Europe’s higher purchasing power can be squeezed as much as possible to recuperate some of what they’ve lost in the bloody hell that is their home market. Even VW and the Germans do the same thing.
Also I wouldn’t say demand cratered. While it slowed, the shares of EV sales is still steadily rising. Pretty sure it’s nearly 40%.this quarter.
maybe using lower labour costs and economics of scale to compete with EU is immoral
I’m assuming you’re being sarcastic?
i believe most guys in reddit believe that
It does seem to be a bit prevalent. It’s also obviously untrue. I mean it’s not their.fault they started growing much later than the Europeans and have lower wages. Or that they built up the entire EV supply chain