Electric Car Prices in China are Falling, While Rising in Europe and the US

Transportation & Logistics

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Adi Ahdiat 15/09/2023 16:40 WIB

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In recent years, the average price of electric vehicles in China has decreased, while in Europe and the US it has increased.

Average Price of Electric Vehicles in China, Europe, and the US (2015-First Half of 2022)

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Electric Car Prices in China are Falling, While Rising in Europe and the US

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Average Price of Electric Vehicles in China, Europe, and the US (2015-First Half of 2022)

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In recent years, China has successfully made electric vehicle prices more affordable, while in Europe and the United States (US), prices have become increasingly expensive.

This is recorded in the report *Affordable EVs and Mass Adoption: The Industry Challenge*, released by JATO Dynamics, an international automotive research firm.

According to JATO Dynamics data, in 2015 the average price of an electric vehicle in China was still very high, at EUR 66,819 (approximately Rp1 billion, assuming an exchange rate of Rp14,991 per EUR in December 2015).

Meanwhile, in 2015 the average price of an electric vehicle in Europe was cheaper, at EUR 48,942 (approximately Rp733 million), and in the US EUR 53,038 (approximately Rp795 million).

However, a few years later, the situation reversed dramatically.

In the first half of 2022, the average price of an electric vehicle in China had fallen to EUR 31,829 (approximately Rp494 million, assuming an exchange rate of Rp15,528 per EUR in June 2022).

Meanwhile, the average price in Europe rose to EUR 55,281 (approximately Rp858 million), and in the US to EUR 63,864 (approximately Rp991 million).

According to JATO Dynamics, this is because European and US electric vehicle manufacturers have focused on developing products for the premium market.

In China, however, manufacturers have focused on increasing sales volume by making cheaper electric vehicles.

"Major Chinese electric vehicle manufacturers, such as SAIC GM Wuling, BAIC, Changan, GAC, BYD, and Chery have launched electric vehicles for the lower market segment, resulting in lower prices," said the JATO Dynamics team in their report.

"Unlike the US and Europe, their industries prioritized more profitable market segments and failed to create electric vehicle offerings that meet the needs of a broader range of consumers," they continued.

JATO Dynamics also noted that in the first half of 2022, the average price of electric vehicles in China was 33% cheaper than conventional vehicles.

In Europe, the average price of electric vehicles was 27% more expensive, and in the US 43% more expensive than gasoline-powered vehicles.

"Behind the success of China's electric vehicle adoption, the main driving factor is the industry's ability to produce affordable electric vehicles," they said.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."