LAS VEGAS, Nevada: In an interview with Reuters, Forvia CEO Patrick Koller said Chinese automakers can build an electric vehicle (EV) for 10,000 euros less than European automakers, which would be a significant cost advantage when working against European manufacturers in their home markets .
Speaking at the Consumer Electronics Congress in Las Vegas this week, Koller stressed that China was making “good vehicles” and that Europe would not be able to stop imports, as European consumers want to buy cheaper electric cars.
The situation is “more dangerous” for Europe than the US, as high tariffs have limited China’s share of the US market, he added.
According to a study by JATO Dynamics, the average price of electric cars in Europe has increased from €48,942 to €55,821 and €53,038 to €63,864 in the US since 2015, compared to a decline in China to €31,829 from €66,819 . cheaper than petrol cars.
Chinese EV makers can produce vehicles for less because they have lower research and development costs, investment levels and labor costs than European competitors, Koller explained.
According to French automotive consultancy Inovev, China’s EV makers account for about 5.8 percent of Europe’s EV share, but high US tariffs on Chinese-made vehicles have prevented them from capturing a significant share of the US car market.
Koller said that to take advantage of the federal incentives in the inflation reduction law signed in August, Forvia will invest more in the United States, adding that the company will meet its goals of increasing revenues to 30 billion euros by 2025 and sales of 1 billion euros in assets this year.
Source: sn.dk