Thursday, April 25, 2024

An epic Chinese EV price war

 A video from The Electric Viking.   

  • China's reached 50% market share for EVs and plug-in hybrids (PHEVs).  Already.  And the rate of growth suggests 70% market share next year and 95% the year after.
  • Battery pack prices have halved.  
  • There is huge oversupply of EVs in China because of how weak the Chinese economy is.
  • Chinese buyers don't trust legacy carmakers to get EVs right, and so won't buy from them.
  • EV prices are being slashed in China.
  • Chinese profits buoy up Western legacy carmakers profits.  If China is unprofitable, then they're in trouble.


Conclusion:  Western legacy carmakers are in serious strife.  And, logically: Chinese EV manufacturers will turn to exports to survive.  Which suggests legacy carmakers aren't safe even in their home markets.  

Oh, and EVs/PHEVs continue to head inexorably towards market dominance.

 

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