Shulou(Shulou.com)11/24 Report--

CTOnews.com, Sept. 15 (Reuters)-European Union officials said recently that Chinese electric cars have put pressure on European automakers to produce low-cost electric vehicles.

EU officials believe that the price of Chinese electric vehicles in the European market is about 20% cheaper than local models, which also brings the share of Chinese electric vehicles in the European market to 8%, which is expected to reach 15% in 2025.

Volkswagen is considering layoffs at its pure electric car plant in eastern Germany, underscoring the serious challenges facing established European car companies, the German news agency reported on Wednesday.

CTOnews.com reported on September 13, citing CNBC, that European Commission President von de Lane announced in the European Parliament's annual State of the Union address in Strasbourg on Wednesday that the European Commission had launched an investigation into Chinese government subsidies to electric car manufacturers to assess whether the European Union needs to impose tariffs to protect itself from Chinese electric car manufacturers that benefit from state subsidies.

Mr von der Lane said the EU must be aware of the risks it faces. "take the electric car industry, for example, which is vital to the clean economy and has great potential in Europe, but the global market is now flooded with cheaper Chinese electric vehicles whose prices are artificially depressed by huge state subsidies."

Thanks to a decade-long subsidy policy, China has now become the largest electric vehicle market in history and has a sound global electric vehicle supply chain. For example, some time ago, German consumers were dissatisfied with the fact that Volkswagen's compact all-electric car, the ID.3, was sold much lower in China than in its hometown in Germany.

In response to this matter, a spokeswoman for Volkswagen explained in an interview with foreign media Autobild that the price difference is caused by a variety of factors:

The Chinese market has the advantage of production cost and low energy cost.

Almost all the suppliers of the model are from China, and the shorter transportation routes and lower production costs make the price lower.

Tesla, BYD and other manufacturers of the "price war" is becoming increasingly fierce, Volkswagen is naturally not willing to lag behind.

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