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Volkswagen:Competition From China EVs: Difference between revisions
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, 30 August 2024→What are the challenges facing Chinese EV expansion in Europe?
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=== Profits === | === 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>. | * 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 name=":3">https://rhg.com/research/aint-no-duty-high-enough/</ref>. | ||
[[File:Rhodium Group.png|left|thumb|933x933px]] | [[File:Rhodium Group.png|left|thumb|933x933px]] | ||
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=== Lack of sell networks === | === Lack of sell networks === | ||
* According to reports, several Chinese EVs are stuck in European ports due to lack of sell networks and trucks to transport them to dealerships. According to someone familiar with the matter, most trucks have been reserved for the likes of Trucks. The Financial Times reported in April 2024 that some Chinese EVs were staying in the ports for more than 18 months<ref>https://www.ft.com/content/496f3bfa-9f0c-4145-9024-188572a280fd</ref>. In March 2024, BYD Europe CEO Michael Shu confirmed to Automotive News Europe that sales channels in Europe are complex. "We need to increase our sales, which will take time because we have to properly understand how to leverage the different sale channels. There are channels for private buyers, fleets, leasing companies and rental car firms to take into consideration. It is a very complex fusion," he said<ref>https://www.autonews.com/china/how-byd-aims-become-top-ev-player-europe</ref>.< | * According to reports, several Chinese EVs are stuck in European ports due to lack of sell networks and trucks to transport them to dealerships. According to someone familiar with the matter, most trucks have been reserved for the likes of Trucks. The Financial Times reported in April 2024 that some Chinese EVs were staying in the ports for more than 18 months<ref>https://www.ft.com/content/496f3bfa-9f0c-4145-9024-188572a280fd</ref>. In March 2024, BYD Europe CEO Michael Shu confirmed to Automotive News Europe that sales channels in Europe are complex. "We need to increase our sales, which will take time because we have to properly understand how to leverage the different sale channels. There are channels for private buyers, fleets, leasing companies and rental car firms to take into consideration. It is a very complex fusion," he said<ref>https://www.autonews.com/china/how-byd-aims-become-top-ev-player-europe</ref>. | ||
=== EU Tariffs === | |||
* The other challenge facing Chinese EV players in Europe is the decision by the EU Commission to impose additional tariffs on them citing that they have unfair advantage over homegrown players due to subsidies provided by the Chinese government. The current preliminary additional tariff on BYD imports is 17%. Geely and SAIC currently attract additional tariffs of 19.3% and 36.3%, respectively<ref>https://ec.europa.eu/commission/presscorner/detail/en/ip_24_4301</ref>. However, these additional tariffs are too low to deter these Chinese EV makers from expanding to Europe. According to the already mentioned analysis by the Rhodium Group, if the EU Commission were to imposed additional 30% tariff on Chinese EV imports, BYD's SEUL U would still be sold at a profit of 4,700 neuros (14,300 euros before the additional tariffs). As it can be seen by the screenshot below, only a few Chinese EV models would lose the incentive to sell in Europe<ref name=":3" /> | |||
[[File:EU Premium.png|left|thumb|1101x1101px]] | |||
== References == | == References == | ||