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Volkswagen:Competition From China EVs: Difference between revisions
Volkswagen:Competition From China EVs (view source)
Revision as of 14:00, 9 September 2024
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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>. | * '''According to Alixpartners, Chinese automakers have cost advantages, localized production strategies and highly-tech enabled vehicles. For instance, they have a 35% "made-in China" cost advantage and can produce their vehicles in half the time taken by legacy automakers (40 months vs 20 months)<ref>https://www.investmentwiki.org/wiki/Automotive_Industry:Europe#December_2023</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>https://www.renaultgroup.com/en/letter-to-europe/</ref>. Given batteries of D-segment vehicles is around 30GWh more than that of C-segment vehicles<ref>https://www.bundestag.de/resource/blob/842494/ae21227aee8ae66277324a0abba943fc/Artikel-2-Jekaterina-Boening-data.pdf</ref>, European D-segment vehicles could cost around 8,000 to 9,000 (9,000-10,000 excluding scale effects) more to produce compared to similar models produced in China.''' | * '''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>https://www.renaultgroup.com/en/letter-to-europe/</ref>. Given batteries of D-segment vehicles is around 30GWh more than that of C-segment vehicles<ref>https://www.bundestag.de/resource/blob/842494/ae21227aee8ae66277324a0abba943fc/Artikel-2-Jekaterina-Boening-data.pdf</ref>, European D-segment vehicles could cost around 8,000 to 9,000 (9,000-10,000 excluding scale effects) more to produce compared to similar models produced in China.''' | ||