The European electric vehicle industry is set to welcome a new inexpensive EV from China’s BYD Co. next year, reportedly pressuring automakers within the continent over new competition.

  • Hachiefy@lemmy.zipOP
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    7 months ago

    Do they really apply subsidies to exported cars though? 20k is about the same price as comparable Japanese mini EVs like Nissan Sakura. If the exported seagull were subsidized, surely it should be even cheaper than that?

    It’s a good question. Subsidies typically apply to vehicles sold within the country providing the subsidy, aiming to boost domestic sales and adoption of EVs. For exported vehicles, the pricing strategy can differ based on various factors including import tariffs, shipping costs, and market competition.

    While $20k might seem comparable to Japanese mini EVs like the Nissan Sakura, there are other elements to consider. For instance, export prices may reflect different costs or include added features to meet the standards and preferences of the target market. Additionally, manufacturers might price their vehicles competitively to balance quality, brand perception, and profitability rather than just cost minimization.

    In the case of the Seagull, if it were subsidized domestically but sold for around $20k internationally, it suggests that the base production costs are kept low enough to be competitive even without export subsidies. Therefore, while subsidies can influence domestic prices significantly, their impact on export prices is typically less direct and more nuanced.

    • reddwarf@feddit.nl
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      7 months ago

      Not to be rude or anything but your responses sound very much like it was generated by AI.