You regularly see MG cars on the road and you increasingly spot a BYD in the Netherlands, but for the time being there is no flood of electric cars. In fact, there are plenty of reports that EVs are not selling for anything. This does not mean that the battle is over and that the brands will quietly leave, because when it comes to prices, the top hat is far from empty.
It is not without reason that strange collaborations are emerging between previously sworn enemies. The car brands in Europe and Japan have been seeing something for some time Reuters recently calculated: the Chinese car brands can drop the prices of their EVs much further. According to the news platform, Chinese car brands even sell their cars in Europe for double the price in their home country.
EVs are sometimes up to 174 percent more expensive in Europe
Reuters takes the BYD Atto 3 as an example. It costs just under 39,000 euros here, but in China it costs just under 18,000 euros. Brands like Renault and Volkswagen are investing like crazy in an EV costing 25,000 euros, but in theory BYD could immediately outcompete this car. According to Reuters some models are priced up to 174 percent higher in Europe than in China.
Now we hear you thinking: ‘But I’m not going to drive Chinese anyway.’ Well, maybe not you, but for the average Dutch car buyer a low price is like a frikandel sandwich for a first grader: irresistible. For years, the market has been driven here by, for example, a low additional tax. Things like ‘principles’ are no match for a good deal.
Will the prices of Chinese EVs plummet soon? Reuters writes: ‘For now, Chinese automakers, led by BYD, are content to keep export prices high and rake in the profits. They are not out to undermine the European market. They want to make a margin.’ So no dirt-cheap EVs for the time being, if possible Reuters is.
What is the positive side of this story?
Competition is a good thing. It forces other car brands to think critically and come up with ways to lower prices. Everything becomes liquid under pressure. However, it would be bad for the economy and employment here if factories had to close. What you are already seeing is that European and Japanese car brands are entering into partnerships with Chinese concerns, for example to be allowed to use the battery in new EVs.
