- AlixPartners found that, on average, a European EV that cost $31,000 to make would only cost about $20,000 to make in China.
- The firm says that structural advantages, like corporate organization that enables a faster speed of development and cheaper battery costs, are big reasons why China is ahead.
- Europe could catch up if it invests in more battery manufacturing and streamlines its corporate structure.
Chinese cars are catching on for a reason, and it’s not super hard to see why. Chinese brands are making big inroads globally among value-oriented consumers in search of a deal. These cars are generally very good, especially for the cheaper-than-average prices they’re offering. Of course, this has sent Europe into an existential crisis, as the Chinese brands threaten the future of its automotive industry. Some insist that this is merely political policy from Beijing to underprice cars and weaken global industry.
