It is obvious that low cost labor force in China plays a role in Chinese EV prices. However, this is not the case not the only factor not even the main factor. Indeed, even if the Chinese electric cars currently on the market were produced in Europe, they would still be cheaper than their European equivalents.

Why are they cheaper?

AND a recent study by the Swiss bank UBS underlines the fact that even if cars from BYD (Chinese electric vehicle manufacturers) are made in Europe, they will remain 25% cheaper than its competitors European. Reading this study, we also understand that even with the restrictions that the European Union wants to impose on Chinese electric cars, the latter will competitive.

The study, which is based on the manufacturer BYD, emphasizes two reasons which would explain this phenomenon.

Record production times

Throughout history, various car manufacturers have always strived for this optimize production times their car. No, we’re not going to remind you again of that moment in history when Ford revolutionized an entire industry by rolling its Ford T off the assembly line.

Let’s stay in the present with Renault AND You are here which prides itself on producing its car in record time. Indeed, Renault has announced that it will be able to produce its next Renault 5 in only 10 short hours. As for Tesla, they will only need it 9:00 a.m make a model If we can be impressed by such numbers, BYD is very different. Indeed, in BYD it would be necessary less than five hours make a car Who can say better?

Because the shorter the production time, the cheaper the car will be to produce, and therefore the cheaper it will be to buy.

There are almost no suppliers

According to the study, this is the second reason why a Chinese electric car will be cheaper than a European one. Indeed, in the case of BYD, 75% pieces that are used in their car directly manufactured by the brand. Because you know that BYD is one of the biggest battery manufacturers for electric vehicles. Moreover, the company also supplies batteries to certain European manufacturers.

It is for these reasons that there is a Chinese electric car cheaper and that a company like BYD also wants to establish itself in the old continent.

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