Why is EV so cheap in China?
Why are they so cheap? There are a lot of Chinese EV companies, so competition is aggressive. That’s the natural part. The un-natural part is that the country has subsidized the various technologies associated with producing these vehicles for awhile. China has built the world’s leading electric vehicle industry with more than 100 brands from the country. Those cars have all sorts of features that would wow the average U. S. American or European competition.Low labour costs in China, coupled with government subsidies and a very well-established supply chain, have given Chinese firms advantages, their rivals have claimed. A report from the Swiss bank UBS, published in late 2023, suggested that BYD alone was able to build cars 25% more cheaply than western competitors.