Aren’t the higher prices for the Chinese cars tariffs, VAT and shipping costs?
1104777236
Duh…Blame the market competitiveness and trade barriers for European markets
YixinKnew
The EU surrendering their auto and wind turbine industries for imports…
They’ll manufacture nothing in 10 years.
tom_zeimet
China has huge tax breaks for EVs. So that massively influences the domestic price.
The real figure is probably closer to +50% (over Chinese domestic market pricing) for most cars when factoring in taxes. Because there’s a 10% import tariff to the European Union and VAT in most European countries is around 20%.
Still a 20-30% profit margin is pretty high for the EU car industry. Though the exclusion of Chinese EVs from the French incentives or Germany ending its incentives has led to Chinese companies giving pretty big rebates to stimulate sales (-5000€ by MG in France) and up to 13,000€ from BYD in Germany.
Edit: There is no purchase tax in China up to a value of 339,000 Yuan (46,000€/47,000$)
Just go to China, buy a car and drive it home. Done.
wasterman123
Off topic but thought that was an Audi ev
Psychlonuclear
I’d like to see a direct comparison of the build quality, materials quality, and safety systems for the same model available in China and Europe. I bet you’ll find many differences.
Also, this is why people should stop posting the Chinese prices, they’re completely irrelevant to the rest of the world.
ghostofTugou
Dumping in european market by doubling their prices, noiiiiice
itsjust_khris
Yeah this sub seems to think Chinese EV companies would charge less than competitors in the American market but why would they? If the car is so much better than American offerings they’ll charge as much as they can get. Maybe not initially but eventually for sure. Just more profit to be made.
FrankSamples
Make them too cheap = problem.
Make them too expensive = problem.
Make them = problem.
farticustheelder
Several points: EU pricing levels include a near 20% VAT tax, which China prices don’t; there is also a 10% (I think that’s the right number) import tariff; shipping costs are currently high leading Tesla to charge about 40% more in the EU than China.
There are also strategic reasons not to sell Chinese EVs in Europe for as cheap as in China + tariffs + shipping + VAT. The primary reason is that China EV companies will want to build EU EVs in the EU. EU wages are higher, land for factories is more expensive, energy is more expensive…so when China EV makers set up EU factories they don’t want to increase the price of vehicles. Instead they will drop the price by at least the shipping plus tariff amount.
CyberAsura
EU tax is a bitch on everything
Routine-Tree1485
Hang on, if Chinese Car prices are low, it’s predatory pricing and they’re not competing fairly.
If prices are high, they’re ripping off Europeans…
Well which one is it? You can’t have it both ways EU…
SexyDraenei
its almost like shipping and taxes arent a thing!
not to mention the EU cars are often different spec to the local cars to meet higher safety specs.
iqisoverrated
And if they were to sell them for cheap here everyone would be moaning about how other automakers cannot compete on price and holler for extra tarrifs.
There’s certainly stuff you can criticize about Chinese business practices but this is getting ridiculous.
RedPanda888
Europeans earn more than double what Chinese people do. A lot of products are more expensive for people in wealthier nations.
Dreaming_Blackbirds
how about German automakers charging European consumers double what it costs to make the car? because that’s what LITERALLY EVERY AUTOMAKER does to make a profit and survive
19 Comments
Well when the competition is so weak
Capitalism, no?
Aren’t the higher prices for the Chinese cars tariffs, VAT and shipping costs?
Duh…Blame the market competitiveness and trade barriers for European markets
The EU surrendering their auto and wind turbine industries for imports…
They’ll manufacture nothing in 10 years.
China has huge tax breaks for EVs. So that massively influences the domestic price.
The real figure is probably closer to +50% (over Chinese domestic market pricing) for most cars when factoring in taxes. Because there’s a 10% import tariff to the European Union and VAT in most European countries is around 20%.
Still a 20-30% profit margin is pretty high for the EU car industry. Though the exclusion of Chinese EVs from the French incentives or Germany ending its incentives has led to Chinese companies giving pretty big rebates to stimulate sales (-5000€ by MG in France) and up to 13,000€ from BYD in Germany.
Edit: There is no purchase tax in China up to a value of 339,000 Yuan (46,000€/47,000$)
https://cnevpost.com/2024/01/01/factbox-china-nev-purchase-tax-policy-2024/
Just go to China, buy a car and drive it home. Done.
Off topic but thought that was an Audi ev
I’d like to see a direct comparison of the build quality, materials quality, and safety systems for the same model available in China and Europe. I bet you’ll find many differences.
Also, this is why people should stop posting the Chinese prices, they’re completely irrelevant to the rest of the world.
Dumping in european market by doubling their prices, noiiiiice
Yeah this sub seems to think Chinese EV companies would charge less than competitors in the American market but why would they? If the car is so much better than American offerings they’ll charge as much as they can get. Maybe not initially but eventually for sure. Just more profit to be made.
Make them too cheap = problem.
Make them too expensive = problem.
Make them = problem.
Several points: EU pricing levels include a near 20% VAT tax, which China prices don’t; there is also a 10% (I think that’s the right number) import tariff; shipping costs are currently high leading Tesla to charge about 40% more in the EU than China.
There are also strategic reasons not to sell Chinese EVs in Europe for as cheap as in China + tariffs + shipping + VAT. The primary reason is that China EV companies will want to build EU EVs in the EU. EU wages are higher, land for factories is more expensive, energy is more expensive…so when China EV makers set up EU factories they don’t want to increase the price of vehicles. Instead they will drop the price by at least the shipping plus tariff amount.
EU tax is a bitch on everything
Hang on, if Chinese Car prices are low, it’s predatory pricing and they’re not competing fairly.
If prices are high, they’re ripping off Europeans…
Well which one is it? You can’t have it both ways EU…
its almost like shipping and taxes arent a thing!
not to mention the EU cars are often different spec to the local cars to meet higher safety specs.
And if they were to sell them for cheap here everyone would be moaning about how other automakers cannot compete on price and holler for extra tarrifs.
There’s certainly stuff you can criticize about Chinese business practices but this is getting ridiculous.
Europeans earn more than double what Chinese people do. A lot of products are more expensive for people in wealthier nations.
how about German automakers charging European consumers double what it costs to make the car? because that’s what LITERALLY EVERY AUTOMAKER does to make a profit and survive