EVs - China has become the world leader whilst American and European EVs are floundering – how has this happened?
China will not allow equal trading conditions and relies on state backed trade and non-trade barriers to 'out compete' western car makers and achieve global dominance
First some history:
EVs have been made In Europe and the US for well over 100 years.
The Story in Pictures of the Early Electric Cars, 1880-1920
The recent massive push to ‘net zero’ caused car makers to invest billions using massive government subsidies to entice buyers.
These subsidies ra out with the entirely predictable impact on EV sales:
“(Zero Hedge)—The push into electric vehicles was always bullshit, sold by the left as the move that would future-proof America’s and Europe’s legacy automakers and save the planet – and anyone not buying it was subject to a guilt trip from smug, private-jet-owning elitists.
Instead, EVs are now looking like one of the costliest strategic blunders in modern automotive history. Major U.S. and European brands – including Ford, General Motors, Stellantis, Mercedes-Benz, and Volkswagen – have collectively burned through nearly a staggering $114 billion on EV ventures between 2022 and late 2025, according to an analysis by Robert Bryce in the The New York Post.
“Between 2022 and the third quarter of 2025, legacy automakers alone are estimated to have lost roughly $83.6 billion on EV programs, including major write-downs at Ford and GM. EV-only startups Lucid and Rivian account for another $30.2 billion in red ink, with total losses across seven automakers approach $114 billion. The newspaper said it excluded Tesla from their analysis because a significant portion of its profits comes from regulatory credit sales and non-auto businesses.
“From 2015 through early 2024, automakers announced more than $188 billion in U.S. EV and battery investments, with spending accelerating after passage of the so-called Inflation Reduction Act in 2022, according to an Environmental Defense Fund report. GM pledged $35 billion through 2025, Ford committed $50 billion through 2026, and Volkswagen launched a $131 billion global electrification and digital push over five years.
“In the U.S., EV sales briefly spiked in Q3 2025 as buyers rushed to capture the $7,500 federal tax credit before it expired on September 30. That incentive-driven surge pushed quarterly sales above 437,000 units and lifted EV market share to 10.5%, according to Cox Automotive. Once the subsidy disappeared, demand collapsed. Q4 sales fell to roughly 234,000 vehicles—a 46% drop from Q3—cutting market share nearly in half. Full-year EV sales for 2025 slipped to about 1.28 million units, marking the first year-over-year decline since 2019, Kelley Blue Book reported at the time.
European automakers faced a similar reckoning.
Aggressive emissions mandates rammed through by climate-obsessed eurocrats collided with weakening demand and an onslaught of lower-cost Chinese competitors.
In 2025, China’s BYD overtook Tesla as the world’s largest EV seller, underscoring how state-backed Chinese firms now dominate global EV volume, BBC reports.
As pressure mounted, Volkswagen canceled or delayed multiple EV projects, Mercedes paused or scrapped several U.S.-bound EQ models, and others quietly extended the life of internal-combustion and hybrid platforms while lobbying for regulatory relief.
Chia has overtaken Tesla as the world’s largest EV seller. – this reflects the aggressive policy of subsidies and coercion used by the Chinese to manipulate sales among China’s 1.4 billion population ad compete with other EV makers – undercutting western government subsidies and the investment of billions of dollars In manufacturing facilities
Western car makers have to make a profit – Chinese car makers don’t – capitalism v communism.
EV Graveyards: China’s Unsold Cars Rot in Fields
Unsold Chinese EVs Are Piling Up At European Ports - CleanTechnica
What lies behind the ‘success’ of China’s global EV dominance?
Using Brave AI: to check out leading Chinese EV maker BYD.
“BYD’s EVs are not entirely subsidized, but the company has received substantial government support that significantly influences its production and pricing. In 2022 alone, these direct subsidies amounted to $2.1 billion, equivalent to 3.5% of BYD’s revenues that year.
Not all that much compared to America and European government tax manipulations!
There’s more of course – not least low wage rates – even slavery, but also automation.
“Chinese car workers earn significantly less than their American and European counterparts, though the gap has narrowed in recent years. As of 2025, the average annual salary for an automotive worker in China is approximately ¥101,996 (about $14,000), with hourly rates around ¥49 ($6.70).
In contrast, American auto workers earn an average of $58,120 per year (as of 2021), with hourly wages ranging from $16 to $29, and unionized workers at companies like GM and Tesla earning significantly more, including bonuses.
European workers earn even higher: German auto workers average €31.40 per hour (~$34.50), totaling around $69,000 annually, while workers in countries like Japan and South Korea benefit from high base pay and substantial bonuses, pushing total compensation toward $80,000 or more.
“The average time to build a BYD car on the factory floor is approximately 18 to 36 hours, consistent with the typical timeline for modern vehicle manufacturing. This includes key stages such as body shop (2–4 hours), painting (up to 8 hours), final assembly (6–12 hours), and rigorous testing.
BYD’s factory in Shenzhen is highly automated and among the most efficient in the world, with reports indicating that the company builds one car every 60 seconds at its largest facility. This high-speed production is enabled by vertical integration—BYD manufactures a large portion of its components in-house, including its proprietary blade battery—which reduces supply chain delays and enhances efficiency.
“Ford typically takes approximately 20 to 37 hours to build a car, depending on the model and production process.
“It takes approximately 18 to 35 hours to assemble a GM car on the production line, depending on the model, configuration, and plant efficiency.
Pretty similar.
dditionally, BYD benefits from indirect support, including:
Purchase premiums for EV buyers in China that favor domestic manufacturers.
Subsidies to battery producers (like CATL), lowering input costs.
Preferential lending, tax reductions, and cheap land for manufacturing.
“While these subsidies are not applied to each individual vehicle, they collectively reduce production costs and enable BYD to offer competitively priced EVs. The EU has found that Chinese EVs are “heavily subsidized,” with provisional tariffs proposed at 17.4% for BYD, reflecting the perceived distortion in market pricing due to state support.
“CATL has received substantial government subsidies, particularly in recent years. In 2023, the company received $790 million in state subsidies, according to data from the ITIF. This figure rose significantly in 2024, with CATL receiving $532 million in the first half of the year alone—more than any other company in China for that period, including state-owned Sinopec, which received $563 million for the entire year.
Over the period from 2018 to 2023, CATL received a total of $1.8 billion in subsidies. These figures underscore CATL’s status as the largest beneficiary of Chinese government support in the EV battery sector.
Still pretty small beer.
“Chinese EV makers receive preferential lending through low-cost credit from state-owned banks, a key component of broader government support. This includes interest rates as low as 2%, significantly below the commercial average, which helps reduce financing costs for production and expansion. In addition to subsidized loans, automakers benefit from state-backed financing programs and preferential credit terms that enable aggressive pricing and market entry abroad.
China also discriminates against internal Combustion Engines (ICE) coercing purchase of EVs.
“China is actively phasing out internal combustion engine (ICE) vehicle sales through a combination of policy incentives for electric vehicles (EVs) and increasingly strict regulations on ICE cars.
“National and Local Incentives for EVs: Local governments offer significant benefits for EV purchases, including tax breaks, exemptions from traffic restrictions, and priority access to vehicle registration permits—particularly in major cities like Beijing. These incentives make EVs more affordable and accessible compared to ICE vehicles.
Regional Bans on ICE Sales: Several regions have announced future bans on ICE car sales:
Hainan Province has committed to a ban on ICE car sales starting in 2030, positioning itself as a free trade hub.
While not a nationwide ban yet, the 2035 deadline is widely cited as a target for phasing out ICE vehicles, with only a “tiny handful” of low-volume manufacturers exempt.
Stricter Emissions Standards: China has implemented progressively tighter emissions standards (currently China VI, with China VII expected soon). Vehicles that do not meet these standards face scrapping or restrictions, reducing the lifespan and resale value of ICE cars.
Market Pressure: As EV adoption accelerates, dealers are offering massive discounts on ICE vehicles due to declining demand and regulatory uncertainty. This trend is expected to intensify as the 2035 deadline approaches.
In summary, while there is no nationwide immediate ban on ICE car sales, China is systematically eliminating them through incentives for EVs, regional bans, stricter emissions rules, and market forces, with a clear policy direction toward a full transition by 2035.
“China offers a range of incentives to EV buyers, combining national and local policies to boost adoption.
“National Trade-In Subsidy: As of 2025, buyers who trade in an old vehicle (gasoline or EV) for a new EV or plug-in hybrid receive a 20,000 yuan ($2,730) subsidy. For those upgrading to a gasoline car with an engine under 2 liters, the rebate is 15,000 yuan. This program was renewed in January 2025 and is expected to continue into 2026, though details for 2026 have been adjusted to favor higher-priced models.
Purchase Tax Exemption: The national exemption from vehicle purchase tax for EVs continues through 2027. For purchases between 2024 and 2025, the full exemption applies. From 2026 to 2027, the tax is reduced by 50%, with a maximum allowance of 15,000 yuan.
Manufacturer Discounts: In response to a prolonged price war, major Chinese EV makers—including BYD, Nio, Li Auto, and Tesla—are offering significant direct discounts and financing incentives. These include:
Cash subsidies of up to 15,000 yuan per vehicle.
Zero-interest financing schemes for up to three years.
Discounts of up to 11.5% on certain models.
Local Incentives: Cities like Nanjing and Chengdu provide additional support, offering up to 4,000 yuan per car purchase or 8,000 yuan in consumer rebates.
Non-Monetary Benefits: EV owners benefit from dedicated green license plates, free parking, road toll exemptions, and priority vehicle inspections in many cities.
These combined incentives have driven EV sales to over 10 million units in 2024, with expectations of continued growth in 2025 despite economic headwinds.
Looks similar to measures being rolled out In the UK and the EU. socialists/communists of the world united!
So, EV sales are severely manipulated in China and that manipulation is being extended to the UK and EU.
Imagine for a minute if the west employed similar tactics with ICE CARS in CHINA!
The EV market might collapse and Chinese workers might get better working conditions and a union backed pay rise!
Onwards!
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hhmmm.... I wonder....what happens to the good people of China who are subject to a commie regime are faced with a government that decides to shut off all the EVs.....anything digital can be hacked.
The $30.2 billion in losses at Rivian (and Lucid) really underscores the capital-intensive nature of EV manufacturing when you're competing against both legacy automakers with deep pockets and Chinese manufacturers with state backing. Rivian's challenge isn't just about building great vehicles - the R1T has won accolades - but achieving scale economics without the vertical integration advantages BYD enjoys. The subsidy cliff that caused Q4 2025 sales to drop 46% hit Rivian particularly hard since their premium pricing already puts them above mass-market competitors. The question is whether Rivian can survive long enough to reach profitability, or if they'll need to find a strategic partner to weather this transition period.