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Volkswagen:Competition From China EVs: Difference between revisions
Volkswagen:Competition From China EVs (view source)
Revision as of 14:22, 6 September 2024
, 6 September 2024→Production Costs in China Versus in Europe
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* An analysis by UBS established that it costs less for Chinese EVs to export to Europe than manufacture locally. '''The analysis also established that it would cost BYD $10,500 (€ 9,500) less to produce its SEAL in China than a Volkswagen ID.3 in Europe. Still, they concluded that that BYD will still be able to achieve a 25% cost advantage by producing in Europe thanks to its vertically integrated supply chain. UBS pointed out that BYD makes 75% of its auto parts internally'''<ref>https://technode.com/2023/09/06/byds-manufacturing-costs-in-eu-could-be-25-lower-than-rivals-ubs/</ref>. | * An analysis by UBS established that it costs less for Chinese EVs to export to Europe than manufacture locally. '''The analysis also established that it would cost BYD $10,500 (€ 9,500) less to produce its SEAL in China than a Volkswagen ID.3 in Europe. Still, they concluded that that BYD will still be able to achieve a 25% cost advantage by producing in Europe thanks to its vertically integrated supply chain. UBS pointed out that BYD makes 75% of its auto parts internally'''<ref>https://technode.com/2023/09/06/byds-manufacturing-costs-in-eu-could-be-25-lower-than-rivals-ubs/</ref>. | ||
* HSBC estimates that Chinese EV makers have a 30% cost advantage<ref>https://www.bloomberg.com/opinion/articles/2024-06-12/europe-navigates-a-precarious-road-on-china-electric-vehicle-tariffs?srnd=good-business</ref>. | * HSBC estimates that Chinese EV makers have a 30% cost advantage<ref>https://www.bloomberg.com/opinion/articles/2024-06-12/europe-navigates-a-precarious-road-on-china-electric-vehicle-tariffs?srnd=good-business</ref>. | ||
* According to Luca de Meo, CEO of Renault Group, the cost of producing a C-segment EV in Europe is around 6,000 to 7,000 euros (25%) cheaper than in Europe. He added that wage costs are 40% higher in Europe while energy costs are two times lower in China<ref>file:///C:/Users/Admin/Downloads/Letter%20to%20Europe.pdf</ref>. | |||
* According to a March 2024 study by Boston Consulting Group (BCG), OEMs currently make a lose of $6,000 for every EV sold for $50,000 (after tax credits) in Unites States. The firm examined a number of OEMS including those producing in Europe such as Volkswagen<ref>https://www.bcg.com/publications/2023/reducing-the-electric-vehicle-manufacturing-costs</ref>. | * According to a March 2024 study by Boston Consulting Group (BCG), OEMs currently make a lose of $6,000 for every EV sold for $50,000 (after tax credits) in Unites States. The firm examined a number of OEMS including those producing in Europe such as Volkswagen<ref>https://www.bcg.com/publications/2023/reducing-the-electric-vehicle-manufacturing-costs</ref>. | ||