The rise of inexpensive Chinese electric vehicles has upped the pressure on legacy automakers who have turned to suppliers, from battery materials makers to chipmakers, to squeeze out costs and develop affordable EVs quicker than previously planned.
If you see that European car makers sell the same car in China for less than half than they charge at home, you know they are basically milking us just for extra profit.
Except it’s rarely the “same car”. For example a Tesla Model 3 manufactured in China has an LFP lithium-ion battery, while the US manufactured ones use an NCA lithium-ion battery. It’s by far the most expensive component of the car and LFP batteries are much cheaper.
There are often other differences too - such as optional extras being standard in one market. And warranties vary (those are not free - it costs money to fix faulty cars and they factor it into the sale price).
actually they’ve been selling the LFP version in North America for a while now. Even with the extra import costs and reduced government grant due to a Chinese battery, it still ends up cheaper.
If you see that European car makers sell the same car in China for less than half than they charge at home, you know they are basically milking us just for extra profit.
Except it’s rarely the “same car”. For example a Tesla Model 3 manufactured in China has an LFP lithium-ion battery, while the US manufactured ones use an NCA lithium-ion battery. It’s by far the most expensive component of the car and LFP batteries are much cheaper.
There are often other differences too - such as optional extras being standard in one market. And warranties vary (those are not free - it costs money to fix faulty cars and they factor it into the sale price).
actually they’ve been selling the LFP version in North America for a while now. Even with the extra import costs and reduced government grant due to a Chinese battery, it still ends up cheaper.
Sounds like what I’d like is whatever options or differences that make the car half as cheap.
But with the American version you can have a janky mounted door and someone that forgets to install the brake disks
I think their implication is that whenever they’re selling in China is kind of trash, and you wouldn’t think it’s a good deal if you looked closely.
Furthermore regulations would prohibit said trash from being available in certain areas.