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Volkswagen:Competition From China EVs: Difference between revisions
Volkswagen:Competition From China EVs (view source)
Revision as of 12:02, 9 September 2024
, 9 September 2024→Reasons for the dominance of Chinese automakers in the EV industry
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* The Chinese government has a number of industrial tools in place such as as the "dual credit system". This system makes it easier for consumers to get an EV license than an ICE license. The government also supports the EV industry by providing incentives and subsidies. Center for Strategic and International Studies (CSIS) estimates that the government has incurred a total of $230.9 billion (between 2009 to 2023) to support the EV sector with subsidy per vehicle standing at $4,764 in 2023<ref name=":0">https://www.csis.org/blogs/trustee-china-hand/chinese-ev-dilemma-subsidized-yet-striking</ref>. | * The Chinese government has a number of industrial tools in place such as as the "dual credit system". This system makes it easier for consumers to get an EV license than an ICE license. The government also supports the EV industry by providing incentives and subsidies. Center for Strategic and International Studies (CSIS) estimates that the government has incurred a total of $230.9 billion (between 2009 to 2023) to support the EV sector with subsidy per vehicle standing at $4,764 in 2023<ref name=":0">https://www.csis.org/blogs/trustee-china-hand/chinese-ev-dilemma-subsidized-yet-striking</ref>. | ||
* Majority of the government support have recently been sales tax exemption. | * Majority of the government support have recently been sales tax exemption. | ||
* '''However, government support has started declining. Subsidy per vehicle stood at $4,764 in 2023 down from $6,656 in 2022 and $13,860 in 2018. Most of the government subsidy goes to sales. Infrastructure and research development subsidies only amounted to 515 euros per vehicle.''' | * '''However, government support has started declining. Subsidy per vehicle stood at $4,764 in 2023 down from $6,656 in 2022 and $13,860 in 2018. Most of the government subsidy goes to sales. Infrastructure and research development subsidies only amounted to 515 euros per vehicle. According to S&P Global, sales tax exemption in China currently stands at about $4,200 and will be lowered to about $2,100 in 2026-2027'''<ref>https://www.spglobal.com/ratings/en/research/articles/240424-credit-faq-china-s-different-paths-to-driving-consumption-electric-vehicles-13082880</ref>'''.''' | ||
* It's good to point out that foreign automakers such as Volkswagen and Tesla producing in China also receive government subsidies though at a much lower scale compared to local makers. For instance, according to Kiel purchase subsidies provided to BYD amounted to around 1.6 billion in 2022 while that of Tesla was around 0.4 billion<ref>https://www.ifw-kiel.de/publications/news/chinas-massive-subsidies-for-green-technologies/</ref>. | * It's good to point out that foreign automakers such as Volkswagen and Tesla producing in China also receive government subsidies though at a much lower scale compared to local makers. For instance, according to Kiel purchase subsidies provided to BYD amounted to around 1.6 billion in 2022 while that of Tesla was around 0.4 billion<ref>https://www.ifw-kiel.de/publications/news/chinas-massive-subsidies-for-green-technologies/</ref>. | ||