The Dark Side of Chinese EV Cars

The Dark Side of Chinese EV Cars

China is the world’s leader in electric vehicles, with local companies manufacturing a wide variety of cars and scooters.chinese ev cars But one video is showcasing a dark side to that industry boom: enormous fields filled with thousands of abandoned Chinese EVs. The drone footage, which was reshared by YouTuber Winston Sterzel, shows Geely Kandi 11 EVs and Neta V EVs in large piles that look like they haven’t been touched for years. The cars appear to have been left behind when car-sharing services failed, and their owners simply weren’t able to afford to keep them going. The same thing happened in Shanghai last year with hundreds of thousands of bicycles that were abandoned after the bike-sharing craze passed its peak.

While many European carmakers are still struggling to sell EVs at reasonable prices, Chinese brands have found a way to make their offerings more affordable.chinese ev cars Their costs are lower than those of their Western counterparts, largely because of the country’s dominant position in lithium-ion battery cell production. Several Chinese firms have also invested in research and development centers in the US and Europe, but production remains in China to cut down on costs, Zeekr’s Fotinos says.

Another factor driving down the cost of Chinese EVs is that they typically offer more generous incentives and tax credits than their Western competitors, making them more affordable to consumers.chinese ev cars The Chinese government also has a tendency to focus resources on industries it wants to grow. The EV market is a perfect example of this, with the government handing out financial subsidies to encourage companies to produce and distribute EVs.

While the most explicit Chinese government subsidy—a one-time purchase credit for consumers—ended in 2022, there are countless other implicit subsidies that still apply.chinese ev cars These include below-market credit, below-market equity, negotiated rates on land leases, and ad-hoc tax cuts given to local governments.

If the European Commission concludes that Chinese EV manufacturers are receiving unfair advantages, it may institute higher import duties on the products.chinese ev cars This would sting at the very moment when Europeans are trying to reduce their dependence on imported oil and shift toward a net-zero emissions economy, but it could halt the expansion of Chinese companies into foreign markets before they can really take off. Amid rising geopolitical tensions, a European investigation into Chinese EV makers’ business practices could snuff out the growth of their global presence at a critical moment. And even if it doesn’t, many Americans might be unwilling to buy a car that comes from China—even if that car is a Tesla—given the country’s reputation for espionage. As such, it’s unlikely that you’ll see a BYD Seagull in your neighborhood any time soon. Or any other Chinese EV for that matter.

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