I don’t know that they’re out to make money though. A lot of the Chinese manufacturers are now struggling due to the price war they instigated themselves. Huge production surplus but they pushed down the price so much they hardly make any money
Competition is fierce, but they are not exactly struggling due to government subsidies/incentives. These are so extreme that Chinese manufacturers are over producing and dumping “used” EVs with zero mileage for export.
Similar to US agricultural dumping, this is a terrible policy for everyone, except for the beneficiaries of the subsidies, and maybe the overseas consumers who get cheap EVs in the short term.
Brand recognition is important, but it’s a dangerous game operating mostly on government subsidies. Once you have established low prices it’s hard to reverse it
I don’t know that they’re out to make money though. A lot of the Chinese manufacturers are now struggling due to the price war they instigated themselves. Huge production surplus but they pushed down the price so much they hardly make any money
Competition is fierce, but they are not exactly struggling due to government subsidies/incentives. These are so extreme that Chinese manufacturers are over producing and dumping “used” EVs with zero mileage for export.
Similar to US agricultural dumping, this is a terrible policy for everyone, except for the beneficiaries of the subsidies, and maybe the overseas consumers who get cheap EVs in the short term.
China’s Zero-Mile ‘Used’ EVs Are Flooding Global Markets - https://insideevs.com/news/763687/china-zero-mile-used-evs/
I think a lot of it is also growing their market share and establishing their brand.
Brand recognition is important, but it’s a dangerous game operating mostly on government subsidies. Once you have established low prices it’s hard to reverse it