Chinese EVs Now Almost as Affordable as Gasoline Cars

Newly released data from the International Energy Agency shows how advanced the Chinese electric vehicle market has become in an international comparison. Next to the limits of charging infrastructure and range, the higher price of electric vehicles has been a major hurdle for buyers all over the world. In China, however, there are now almost as many affordable electric car models as there are cheap traditional gasoline cars on offer. The report named the intense competition in the Chinese small car market as mostly responsible for advantageous consumer price outcomes, with 95 percent of Chinese small car sales already electric in 2024.

The analysis shows that in 2024, 45 percent of internal combustion engine car models in China cost under $25,000. For electric cars, this was the case for 39 percent of models. High-end models were actually more common among traditional cars in China, with 21 percent priced at more than $50,000, compared to 15 percent of EV models. In the mid-ranges, electric cars still ran a little bit more pricey in the country.

Chinese EVs have started to successfully disrupt international, specifically European, markets and due to their lower price points, this is not a surprise. In Europe and the United States, electric car models on offer in 2024 were on average still much more expensive than combustion cars. Only 3 percent of models in Europe and none in the U.S. were priced below $25,000 last year. Only 6 percent and 3 percent, respectively, cost up to $30,000 in the two markets - an overwhelming difference to the reality in China.

The report by the IEA also shows that production by Chinese car makers has started up in Europe, making up around 8 percent of European Union EV production last year. The picture in the U.S. is drastically different, as no Chinese companies have set up shop in the country and individual importing is almost impossible due to U.S. law. President Joe Biden in 2024 also introduced a tariff of 100 percent on the import of electric vehicles, targeting the Chinese market.