Prices are falling sharply – China is boiling Europe down when it comes to electric cars


Europe could lose the race for the mass-produced e-car. While the Stromer in this country tend to be more and more expensive, in China they are already available at low prices, as the consulting firm Jato warns. The government in Beijing has therefore already been able to reduce its subsidy programs, while Europe and the USA continue to invest tax money in the market ramp-up.

Since 2011, the average price for an electric car in Europe has increased by almost 10,000 euros to around 42,600 euros – an increase of 28 percent. In the USA, the price has even risen by 38 percent to 36,200 euros in the past ten years. Quite different in China: There the acquisition costs have almost halved, from 41,800 euros in 2011 to 22,100 euros. While the Chinese have focused politically on cheap e-mobiles for the masses in the past decade, the West has invested in better and better, but also more and more expensive high-tech electric cars. The result: In China there are now e-cars from 3,700 euros, while the price list in Europe only starts at 15,740 euros. In the USA there is nothing to be done for less than 24,800 euros.

Industry experts are concerned about the development. If the European manufacturers fail to offer cheaper models, the Chinese competitors could also conquer high market shares in the West with their inexpensive and increasingly attractive e-cars. Concentrating on inexpensive vehicles also offers another advantage: While the USA and Europe continue to have to heavily subsidize the purchase of Stromer, Chinese buyers increasingly need less financial support.

Only a few Chinese e-car manufacturers are still represented in Europe. Brands like MG and Aiways are still real exotic. However, that should change, manufacturers such as Nio, Ora or Wey have already announced ambitious plans.