Fortune Minerals : Cobalt News

Forbes - October 29, 2023

China's EVs are getting cheaper, while the reverse is happening in Europe and the U.S., according to JATO Dynamics. Meanwhile Ford, GM, Mercedes and VW EV sales stumbled.

China's electric vehicles (EV) are getting cheaper, while the reverse is happening in Europe and the U.S., according to a report from auto industry consultants JATO Dynamics…This will come as no surprise to shareholders in Ford, General Motors, Mercedes and Volkswagen, who have seen stock prices hit after ambitious sales targets for EVs stumbled…"The price gap has widened, with the average retail price of an electric car available in China now less than half the price seen in both Europe and the USA. In the first half of 2023, and electric car cost €31,165 ($33,000) in China, €66,864 ($70,700) in Europe, and €68,023 ($72,000) in the U.S.," JATO said…"Despite efforts by Western (manufacturers) to produce more affordable EVs, these models continue to cost more than their gasoline and diesel equivalents. Today, consumers would need to spend €18,285 ($19,500) and €24,400 ($25,800) to buy an EV in Europe and the U.S., respectively - this is 92% and 146% more than they would need to pay for the cheapest combustion car available. In comparison, in China the cheapest electric vehicle costs 8% less…"China's EVs are not only competing on price but also in terms of quality and power. Today, China can produce and sell an electric car with 200-300 hp for an average of €30,500/$33,150," the report said…JATO Dynamics said in the report intense price competition in China had forced its EV makers to become more efficient to survive, while the Chinese government provided "robust" support, with subsidies totalling $57 billion between 2016 and 2022. Tax breaks had supported sales, while most EVs were exempt from sales tax. China's low labor costs helped too. The average European hourly wage rate is just under 10 times the Chinese one…"As China becomes an increasingly influential player on the global automotive stage, its brands are becoming more visible in countries where, just a few years ago, consumers would not have considered them a viable alternative."