Chinese EVs Get Even Cheaper
China’s EV companies are in a price war within their own country, the world’s largest EV nation based on unit sales. According to several media reports, these firms are pressuring suppliers to cut the costs of their products. This is the only way some EV companies can maintain profits as they lower what consumers pay them.
*Global EV Game
A byproduct of the move toward greater cost efficiency is that Chinese EV companies wll be able to drop prices elsewhere if they use the same suppliers they do in China. And, even if they cannot use local sourcing, they will have learned to leverage their purchasing power outside the world’s most populous nation.
Legacy Car Company Problems
Legacy car companies and smaller EV firms need help matching what the big Chinese companies charge consumers. EV industry leaders led by BYD already have cars priced below $20,000 and, in some cases, well below $15,000. Indeed, manufacturers outside China cannot match these.
If global manufacturers like VW, Ford, GM, and Toyota face EVs at prices they cannot match, their deep EV problems will worsen.
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