The big subsidies ended last year. What remains is 100% tax exemption for BEV and occasional regional subsidies for $1,000-2,000, but neither get to be written as MSRP.
This simulator may help you get an idea on how cheap an EV can get by manufacturing in and sourcing from China. As usual, it’s cheaper land, logistics, storage, energy, labor, plus the unparalleled economy of scale AND extremely fierce competition working here.
People can bury head in sand believing it’s “just cheap labor, IP theft and cutting corners”. Well, the deeper they’re entrenched in the idea, the further they’ll be left behind.
Actually BEV is not exempt from VAT, which is included in the MRSP. The tax exemption that BEV got is purchase tax (10%), which is not included in the list price, ICE vehicle got half exemption (i.e. ICE purchaser has to pay 5% purchase tax), to boost car sales.
The main reason for lower price is mainly due to lower manufacturing cost (economy of scale, robust supply chain), and other factors like fierce competition forces manufacturers to sell vehicles at price barely covers cost contribute as well.
The big subsidies ended last year. What remains is 100% tax exemption for BEV and occasional regional subsidies for $1,000-2,000, but neither get to be written as MSRP.
This simulator may help you get an idea on how cheap an EV can get by manufacturing in and sourcing from China. As usual, it’s cheaper land, logistics, storage, energy, labor, plus the unparalleled economy of scale AND extremely fierce competition working here.
People can bury head in sand believing it’s “just cheap labor, IP theft and cutting corners”. Well, the deeper they’re entrenched in the idea, the further they’ll be left behind.
Actually BEV is not exempt from VAT, which is included in the MRSP. The tax exemption that BEV got is purchase tax (10%), which is not included in the list price, ICE vehicle got half exemption (i.e. ICE purchaser has to pay 5% purchase tax), to boost car sales.
The main reason for lower price is mainly due to lower manufacturing cost (economy of scale, robust supply chain), and other factors like fierce competition forces manufacturers to sell vehicles at price barely covers cost contribute as well.
Wow, that VAT tax exemption is huge.