Chinese cars are 118% more expensive in Europe than in China, and the low-price campaign is proven to be a lie.

South Korean media: The low-price campaign of Chinese cars is a lie, with prices 118% higher than domestic ones!

On February 11, the South Korean media "Global Economy" published an article stating that some analysts believe the so-called "low-price dumping" campaign of Chinese electric vehicle manufacturers in the European market has been proven to be a lie.

According to an analysis by the German Center for Automotive Research (CAR), Chinese brands have not engaged in a price war in Europe but instead sold vehicles at prices more than twice their domestic prices, thus generating substantial profits.

Automotive expert and CAR director Ferdinand Dudenhöffer recently revealed the real pricing situation of Chinese electric vehicles in Europe.

The average price of 13 popular electric vehicles sold in China is 14,936 euros, while the average price at which European dealers sell these vehicles to consumers is 32,573 euros, including value-added tax.

This equates to about 118% higher than the domestic Chinese price. Dudenhöffer stated, "There is absolutely no evidence of dumping in the European market. Brands such as BYD and MG position their vehicles as 'premium products' in Europe, not low-price products."

The reason Chinese companies are unwilling to lower prices lies in their huge initial entry barriers. Advertising and distribution costs for entering new markets are astronomical. Given the limited sales performance at present, it is more advantageous to recoup these costs through a high-price strategy than through aggressive price cuts.

Local retailers, including the German Automotive Industry Association (ZDK), hope that the EU's minimum price standards can calm market turbulence.

Thomas Pekelhahn, president of ZDK, said, "In recent years, tariff conflicts have caused sharp price fluctuations, increasing consumer anxiety. A minimum price system will provide a minimum level of planning security without completely eliminating competition."

However, experts predict that if this pricing structure becomes deeply rooted, the dream of ordinary car owners to own a "cost-effective electric vehicle" will remain out of reach in the short term.

Original: toutiao.com/article/1856795820238848/

Statement: This article represents the views of the author.