Global EditionASIA 中文雙語Fran?ais
Business
Home / Business / Motoring

Chinese vehicles made in EU keep costs edge

China Daily | Updated: 2024-07-29 10:07
Share
Share - WeChat
BYD's electric models attract visitors at a new energy auto expo in Beijing. [Photo by A QING /FOR CHINA DAILY]

Chinese electric vehicle makers like BYD and Chery are charging up production in the European Union to dodge tariffs. On paper, they have an edge, but how long they keep their pole position will hinge on Brussels.

Some home advantages don't travel well. Labor costs add around $500 per car if BYD's pure electric Seal sedan is made in Eastern Europe, UBS calculated in 2024. A factory in Germany would more than quadruple that figure. Additional energy costs are harder to measure and could be even higher. Using international suppliers costs a further $4,000 for this specific model.

But what's under the bonnet counts. China Inc's early push into electric vehicles means it can make an EV's platform and electronics more cheaply. Some players, like BYD, develop batteries and components as well. It helps that research dollars go far further in the Middle Kingdom: both Geely Auto and BYD launched multiple models in 2024, when they invested 4.4 percent and 6.6 percent of revenue in R&D respectively. Meanwhile, Tesla spent 5.1 percent of the top line but christened just one new model in 2023.

Taking all of that into account, UBS analyst Paul Gong estimates that today it would cost BYD roughly 25,000 euros ($27,120) to produce a car in Europe, some 25 percent more than in China. But that is still about 10,000 euros cheaper than similar models put out by European peers.

Seal sedans exported from China to Europe sell for around 45,000 euros. That implies BYD would still earn a handsome profit per car and has scope to undercut EU rivals on price while remaining competitive.

There are no real-world examples to confirm the thesis, as China Inc has yet to start up its first European production lines. Nor do carmakers typically break out specific financials that quantify the value of engineering.

But Sweden-based, Chinese-owned Volvo Cars' disclosures give a hint. The recently launched EX30, a pure electric compact SUV, is its first electric car to use an underlying body developed by parent Geely for Zeekr and Polestar EVs. It can achieve a gross margin of 15 to 20 percent, the company said in February. That helped nudge Volvo into its highest-ever gross margin for battery-powered vehicles in second-quarter results.

However, even careful sums could still be upset by nasty surprises from Brussels. The bloc could threaten fresh probes, tariffs and rules, especially if Chinese marques made in Europe fuel member states' concerns for their legacy automakers.

Evoking new regulations on sourcing and foreign subsidies would disrupt supplies of batteries or other parts, for instance. China's upstarts are formidable rivals, but they still need to test their speed limit on European roads.

Volvo Cars, controlled by China's Geely group, said on July 18 that its net income grew 60 percent to 5.7 billion krona ($525 million) in April to June, compared with a year earlier, as sales fell 1 percent to 102 billion krona. The company added that its gross margin for battery-electric vehicles increased to a record high of 20 percent compared with 3 percent a year earlier.

REUTERS

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 欧美精品一区二区精品久久| 69福利视频一区二区| 欧美大成色www永久网站婷| 又黄又爽又色的视频| 91精品视频播放| 我×鞠婧祎的时候让你在| 亚洲va在线va天堂va手机| 男人j桶进女人p无遮挡免费观看 | 91香蕉视频导航| 成成人看片在线| 久香草视频在线观看免费| 波多野结衣丝袜诱惑| 午夜影视免费完整高清在线观看网站| 日本成本人视频| 青草草在线视频永久免费| 天天爽夜夜爽夜夜爽| 久久久久亚洲精品美女| 极品少妇被猛的白浆直喷白浆| 免费人妻精品一区二区三区| 国产精品久久久久鬼色| 国内精品久久久久久久97牛牛 | 精品久久久久久国产潘金莲 | 国产动作大片中文字幕| 92午夜少妇极品福利无码电影 | 日本一区二区三区日本免费| 亚洲av无码国产综合专区| 欧美视频免费在线| 先锋影音av资源网| 蜜臀AV在线播放一区二区三区| 国产激情一区二区三区| JIZZYOU中国少妇| 性做久久久久久免费观看| 久久人午夜亚洲精品无码区| 欧美国产成人精品一区二区三区| 亚洲高清在线mv| 精品熟人妻一区二区三区四区不卡| 国产免费观看黄AV片| 欧美亚洲国产第一页草草| 国产精品无圣光一区二区| 97精品国产一区二区三区| 学渣坐在学长的棒棒上写作业作文|