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Volkswagen:Competition From China EVs: Difference between revisions
Volkswagen:Competition From China EVs (view source)
Revision as of 11:05, 30 August 2024
, 30 August 2024→How will BYD's Europe Plant Operate?
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== How are prices of models produced by the same Chinese brand developing in different regions? == | == How are prices of models produced by the same Chinese brand developing in different regions? == | ||
* Models produced in China and in Europe by the same manufacturer have different prices. For example, Chinese-made Volkswagen ID.4 Pure with 170 hp has a starting price of €24,879 in China while the same exact model made in Germany starts at €38,915. The price of China-made Ford Mustang Mach-e starts at €46,979 while that made in U.S starts at €55,117. That is according to H1 2023 estimates by Jato Dynamics<ref>https://20190729.fs1.hubspotusercontent-na1.net/hubfs/20190729/Q4%202023%20%20EV%20Price%20Gap%20Report/JATO%20mini%20Paper%2C%20EV%20price%20gap%2C%20A%20divide%20in%20the%20global%20automotive%20industry..pdf</ref>. | * Models produced in China and in Europe by the same manufacturer have different prices. For example, Chinese-made Volkswagen ID.4 Pure with 170 hp has a starting price of €24,879 in China while the same exact model made in Germany starts at €38,915. The price of China-made Ford Mustang Mach-e starts at €46,979 while that made in U.S starts at €55,117. That is according to H1 2023 estimates by Jato Dynamics<ref>https://20190729.fs1.hubspotusercontent-na1.net/hubfs/20190729/Q4%202023%20%20EV%20Price%20Gap%20Report/JATO%20mini%20Paper%2C%20EV%20price%20gap%2C%20A%20divide%20in%20the%20global%20automotive%20industry..pdf</ref>. | ||
* BYD's Dolphin compact car starts at 35,990 euros in Germany, more than double its starting price in China<ref name=":1" />. That's around 1,000 euros less than the ID.3 model in Germany<ref>https://www.volkswagen.de/de/konfigurator.html?---=%7B%22configuration-step-navigation-service%22%3A%22%2F%3FconfigStep%3D%257B%2522context%2522%253A%2522mofa-standalone%2522%252C%2522selectedStep%2522%253A%2522carline%2522%257D%22%7D</ref>. | * BYD's Dolphin compact car starts at 35,990 euros in Germany, more than double its starting price in China<ref name=":1">https://europe.autonews.com/automakers/byd-make-evs-and-batteries-europe-hungary</ref>. That's around 1,000 euros less than the ID.3 model in Germany<ref>https://www.volkswagen.de/de/konfigurator.html?---=%7B%22configuration-step-navigation-service%22%3A%22%2F%3FconfigStep%3D%257B%2522context%2522%253A%2522mofa-standalone%2522%252C%2522selectedStep%2522%253A%2522carline%2522%257D%22%7D</ref>. | ||
* BYD's Atto 3 starts at $41,000 (36,900 euros) in Germany but is available for less than $20,000 in China<ref>https://cmr.berkeley.edu/2024/05/why-does-byd-struggle-to-penetrate-western-markets/</ref>. That's the same price in Germany as that of Volkswagen ID.3. | * BYD's Atto 3 starts at $41,000 (36,900 euros) in Germany but is available for less than $20,000 in China<ref>https://cmr.berkeley.edu/2024/05/why-does-byd-struggle-to-penetrate-western-markets/</ref>. That's the same price in Germany as that of Volkswagen ID.3. | ||
* UBS pointed out that Tesla Model 3 (starting at around 28,500 euros) made in China is 15% more expensive than its BYD rival (also made in China). It added that BYD's vehicles sold in China are 35% cheaper than those of its competitors made in Europe<ref>https://technode.com/2023/09/06/byds-manufacturing-costs-in-eu-could-be-25-lower-than-rivals-ubs/</ref>. | * UBS pointed out that Tesla Model 3 (starting at around 28,500 euros) made in China is 15% more expensive than its BYD rival (also made in China). It added that BYD's vehicles sold in China are 35% cheaper than those of its competitors made in Europe<ref>https://technode.com/2023/09/06/byds-manufacturing-costs-in-eu-could-be-25-lower-than-rivals-ubs/</ref>. | ||
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=== How will BYD's Europe Plant Operate? === | === How will BYD's Europe Plant Operate? === | ||
*'''UBS estimate that BYD's vehicles produced in Europe would likely be 25% cheaper than those of its rivals thanks to its highly integrated vertical supply chains and the fact that 75% of its auto components are made in-house<ref>https://technode.com/2023/09/06/byds-manufacturing-costs-in-eu-could-be-25-lower-than-rivals-ubs/</ref>.''' | *'''UBS estimate that BYD's vehicles produced in Europe would likely be 25% cheaper than those of its rivals thanks to its highly integrated vertical supply chains and the fact that 75% of its auto components are made in-house<ref>https://technode.com/2023/09/06/byds-manufacturing-costs-in-eu-could-be-25-lower-than-rivals-ubs/</ref>.''' | ||
* | * BYD Europe CEO Michael Shu confirmed to Automotive News Europe in March 2024 that production at the Szeged, Hungary will start before 2026 and will have an '''annual production capacity of 150,000 that could double to 300,000'''<ref>https://www.autonews.com/china/how-byd-aims-become-top-ev-player-europe</ref>'''.''' | ||
* The Szeged plant is '''set to receive subsidies from the Hungarian government'''. Hungary's Foreign Minister Peter Szijjarto said the amount of the subsidy will be announced once the EU Commission approves the plant. "This is set to be one of the biggest investments in Hungarian economic history," he said<ref name=":1" />. | * The Szeged plant is '''set to receive subsidies from the Hungarian government'''. Hungary's Foreign Minister Peter Szijjarto said the amount of the subsidy will be announced once the EU Commission approves the plant. "This is set to be one of the biggest investments in Hungarian economic history," he said<ref name=":1" />. | ||
* The Szeged plant has already commenced production and according to Szijjarto , it's worth billions of euros. On Jan 2024, BYD signed a preliminary agreement for the purchase of around 300 hectares of land<ref name=":2">https://bbj.hu/business/industry/automotive/byd-szeged-promises-ecosystem-development-and-a-significant-economic-boost-for-the-area/</ref>. | * The Szeged plant has already commenced production and according to Szijjarto , it's worth billions of euros. On Jan 2024, BYD signed a preliminary agreement for the purchase of around 300 hectares of land<ref name=":2">https://bbj.hu/business/industry/automotive/byd-szeged-promises-ecosystem-development-and-a-significant-economic-boost-for-the-area/</ref>. | ||