Chinese electric cars (EV) cheaper, while the opposite occurs in Europe and the United States, according to a report through the consultants of the Jato Dynamics automotive industry.

This is not surprising for Ford shareholders, General Motors, Mercedes and Volkswagen, who have noticed that inventory costs reached ambitious sales goals for electric vehicles.

Europeans will be more worried than American buyers because the Biden administration insists EV buyers can only claim a $7,500 tax credit if batteries contain certain components made in North America and critical minerals sourced in the U.S.

There is no such limitation in Europe, although the E.U is investigating whether China’s sales of electric cars might require anti-dumping action.

Jato Dynamics said that Chinese EV manufacturers continue to increase forward their opposite western numbers in their ability to make vehicles at competitive prices.

“The value value has widened, with the average retail value of an electric car that must be held in China now less than the share of value that was noted in Europe and the U. S. USA) In China, €66,864 ($70,700) in Europe and €68,023 ($72,000) in the United States,” Jato said.

“Despite Western’s efforts (manufacturers) to produce more affordable electric vehicles, these models continue to carry more than their gasoline and diesel equivalents. Today, consumers spend € 18,285 ($ 19,500) and € 24,400 ($ 25,800) to buy an electric vehicle in Europe and the United States, respectively, is 92% and 146% in addition to that they would like to pay the cheapest to be had the car of combustion. Matrix compared, in China, the prices of cheaper electric vehicles 8% less than the cheapest ice equivalent (internal combustion motor), “Jato said.

“Chinese electric cars are not only at the festival about value, but also in terms of quality and energy. Today, China can produce and sell an electric car with two to three hundred HP for an average of €30,500/$33,150,” the report said.

He cited the Byd seal, a medium sedan, with 204 HP in elite garnish in China for € 24,106/26 197 $. In Europe, the rival closest to the price is a little balance of Renault Twingo, a city car produced in Slovenia, with a value of € 24,320 / $ 26,430 with 81 hp.

Renault Twingo combustion version

Meanwhile, the Western Retry Competition grants defeat and returns to the drawing board.

Last week, Ford Motor’s stock price dived after it reported big losses from its EV business, citing pressure from a price war sparked by Tesla. Ford also cut production of its Mustang Mach-E and scaled back its £12 billion EV investment plan.

Ford’s EV division more than doubled losses to $1.3 billion in the 3rd quarter, compared with the same period last year.

GM has reduced its prognosis of profits before the week and said it abandoned its construction purpose 100,000 electric cars in the 2nd part of this year and more than 400,000 in the first part of 2024, but said when these objectives would be restored.

President Joe Biden drives a Cadillac LYRIQ as he tours the Detroit Auto Show at Huntington Place … [+] Convention Center in Detroit, Michigan on September 14, 2022. (Photo by MANDEL NGAN/AFP via Getty Images)

The Wall Street Journal said GM repeated its EV project.

“He (GM) canceled the EV Production objectives and said he slowed his expansion plans. He needs time to integrate the engineering settings that accumulate the profitability of his production platform,” said street columnist Stephen Wilmot.

“A slower electric cars can reinforce the company’s benefit next year, but weakens the GM position as leader in the automotive industry,” Wilmot said.

Mercedes admitted that he would have to reduce costs to move his electric cars and said that the customer adoption adoption rate of the expected. Volkswagen has had to reduce the production of EV under its past expectations.

The UBS Investment Bank pointed out the monetary hazards in developing EV systems as a call to plateaus, the relative affordability of EVs has worsened as ice discounts increase.

Jato Dynamics said that in the report, the intense festival on costs in China had forced its electric cars brands to survive, while the Chinese government has provided “solid” support, with subsidies for a total of 57 one billion dollars between 2016 and 2022. Discounts had supported sales, while maximum electric cars were exempt from sales tax. China’s low hard work costs have also helped. The average salary rate of the European hour is a little less than 10 times Chinese.

Felipe Muñoz, a global analyst at Jato Dynamics, said that European and American brands want to intensify the R

“While China is an increasingly influential actor in the World Automobile Stadium, its most visual brands in countries where consumers would not have considered a viable alternative. “

“This is a trend that has been promoted through the relative affordability of its models compared to those produced through their western peers, and although the United States and the EU have responded to China’s challenge with primary policy decisions, Politics will not be enough to deal with the problem of affordability ».

“Western (manufacturers) will have to concentrate on investigating and emerging new technologies and production processes designed in particular for a completely electrified future,” Muñoz said in the report.

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