A recent report shows why some Chinese automakers are charging upwards of 100 percent premiums vs their pricing in their home market
Some Chinese cars are up to 178 percent more expensive in Europe than their equivalent models are in China . Chinese automakers are engaged in a price war at home, making slim markups on domestic sales. China 's cheaper production costs, including battery manufacturing and government subsidies, provide them with a competitive advantage. Most of the world is worried that China is flooding international markets by cutting the prices of their EVs.
While additional costs, such as shipping, are factored in, the markups indicate thousands of dollars of additional profit being gained per EV. This is because Chinese manufacturers have rationalized costs at every stage of the manufacturing process, from battery production to raw materials mining. Battery costs are estimated by market intelligence firm Benchmark Mineral Intelligence to be 18 percent cheaper in China than elsewhere.
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