of Taicang Port at Suzhou Port, in China's eastern Jiangsu Province. / China OUT China’s electric vehicles are getting cheaper, while the reverse is happening in Europe and the U.S., according to a report from auto industry consultants JEuropeans will be more worried than American buyers because the Biden administration insists EV buyers can only claim a $7,500 tax credit if batteries contain certain components made in North America and critical minerals sourced in the U.S.
“The price gap has widened, with the average retail price of an electric car available in China now less than half the price seen in both Europe and the USA. In the first half of 2023, and electric car cost €31,165 in China, €66,864 in Europe, and €68,023 in the U.S.,” JATO said.“Despite efforts by Western to produce more affordable EVs, these models continue to cost more than their gasoline and diesel equivalents.
Mercedes conceded having to slash prices to move its EVs and said the consumer adoption rate was lower than expected. Volkswagen has had to cut production of EVs below its earlier expectations. Felipe Munoz, Global Analyst at JATO Dynamics, said European and U.S. manufacturers need to intensify R&D and cut costs to improve affordability.