The Chinese Advantage
Chinese EVs have several competitive advantages:
- Lower production costs: Chinese manufacturers can produce a car for about $5,500, compared to the European minimum of around $20,000.
- government support: China's state capitalist model allows for significant subsidies and strategic investments in the EV sector.
- Supply chain control: China dominates over 80% of the world's battery manufacturing capacity.
- Economies of scale: Chinese manufacturers benefit from larger production volumes.