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Volkswagen:Competition From China EVs: Difference between revisions
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, 30 August 2024→How are prices of models produced by the same Chinese brand developing in different regions?
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* The other thing that enables Chinese EV makers to dominate the market is the cheap labor costs in China. For instance, the average minimum wage in U.S is $7.25 per while in Europe it is $30 per hour. In China, the average minimum wage is $3.7 per hour<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>. | * The other thing that enables Chinese EV makers to dominate the market is the cheap labor costs in China. For instance, the average minimum wage in U.S is $7.25 per while in Europe it is $30 per hour. In China, the average minimum wage is $3.7 per hour<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>. | ||
== How are prices of models produced by the same Chinese brand developing in different regions? == | == How are prices and profits of models produced by the same Chinese brand developing in different regions? == | ||
=== Prices === | |||
* 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">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 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. | ||
* BYD Seal U Comfort starts at 41,990 euros in Germany while its ID.4 rival starts at 46,335 euros <ref>https://ev-database.org/car/2094/BYD-SEAL-U-718-kWh-Comfort</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>. | * 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>. | ||
=== Profits === | |||
* According to price analysis by the Rhodium Group, BYD makes a profit of around 14,300 euros per each SEAL U model sold in Europe, compared to 1,300 euros made in China. The analysis takes into account manufacturer suggested retail prices (MSRPs), shipping, tariffs, distribution and VAT costs<ref>https://rhg.com/research/aint-no-duty-high-enough/</ref>. | |||
[[File:Rhodium Group.png|left|thumb|933x933px]] | |||
== Which Chinese companies have announced plans to start production in Europe? == | == Which Chinese companies have announced plans to start production in Europe? == | ||