Why you can’t buy a cheap Chinese electric car
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Overcapacity Breeds Market Disruption
China's aggressive industrial expansion leads to significant overcapacity, creating pressure to export surplus products. This phenomenon, particularly evident in the electric vehicle (EV) sector, is resulting in an influx of cheaper Chinese vehicles into global markets, including Europe. Chinese EVs are gaining traction in various regions, notably Southeast Asia and South America, with state subsidies enabling them to keep prices artificially low. The European Union expresses concerns over unfair competition as half of Chinese car exports land in Europe. Although current sales are modest, the intent for considerable market penetration looms, threatening to distort existing market dynamics.
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