From CNBC: 2024-06-21 03:03:44

China has spent $230.8 billion over more than a decade to develop its electric car industry, accounting for 18.8% of total electric car sales. The EU plans to impose tariffs on Chinese electric cars, while the US increased duties on imports to 100%.

Beijing’s support for electric cars favored domestic automakers, and the US has not created conditions as attractive for its own industry. Government subsidies in China have faced fraud issues, and analysts suggest major US automakers exit the Chinese market due to fierce competition.

BYD’s net profit per car has dropped to $739, while Tesla’s is $2,919. An intense price war in the EV industry has led to lower prices and product lines. Chinese electric car startup Nio, operating at a loss, predicts 10 automakers will exit the market, leaving 20-30 players.

The US has allocated $370 billion in the Inflation Reduction Act to promote clean technologies, providing a $7,500 credit for electric car purchases. Meanwhile, Chinese support per electric car purchase has decreased from $13,860 in 2018 to $4,600 in 2023.

Read more: China spent $230 billion to build its electric car industry, CSIS says