this post was submitted on 05 Sep 2023
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Main points (to make up for the clickbaity title):

Challenge to bring down European EV manufacturing costs

Lower costs to close price gap with China EVs

China EV sales account for 8% of European total through July

Renault's R5 EV to be 25%-30% cheaper than Scenic/Megane

MUNICH, Sept 4 (Reuters) - Europe's carmakers have a fight on their hands to produce lower-cost electric vehicles (EVs) and erase China's lead in developing cheaper, more consumer-friendly models, executives said at Munich's IAA mobility show.

"We have to close the gap on costs with some Chinese players that started on EVs a generation earlier," Renault (RENA.PA) CEO Luca de Meo told Reuters at the car show, adding when manufacturing costs decline, prices will also go down.

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[–] [email protected] 9 points 1 year ago* (last edited 1 year ago) (4 children)

“The base car market segment will either vanish or will not be done by European manufacturers,” BMW CEO Oliver Zipse said on Sunday evening in reference to China’s push into Europe.

Is there a base car market in Europe at the moment, electric or otherwise? Is there even a need for one? I was able to live comfortably for ten years here without a car. When circumstances changed and I had to buy one this year, I was shocked by the prices. There really isn't an entry level affordable market segment anymore. I don't think there is any car designed for people entering the workforce or young professionals in lower paying jobs.

I remember buying my first car in early 2000s as a young professional. There really was a lot of choice. Not good choices necessarily (yes, I mean you, Clio), but choices.

Edit: hah! I just checked prices for clios where I live. A new one would set you back 26,000 EUR. The average income around here is 47,000/year before tax...

[–] [email protected] 18 points 1 year ago (2 children)

The real base markets are the second hands/occasions. Don’t let the bmw ceo fool you.

[–] [email protected] 4 points 1 year ago

The sh market in my area was made completely crazy by the supply chain issues over the past few years. When I looked into it at the end of 2022, ah cars of 3-4 years were more expensive than the new ones. I could afford to wait 10 months for a new car so that's what I went with, but had I needed a car quickly, I'd have had to part with serious cash.

[–] [email protected] 2 points 1 year ago

It is, but that's harder if you don't want to throw co2 out the back end

[–] [email protected] 4 points 1 year ago (1 children)

The base car being the lowest tier? There is absolutely a demand for them but production has slowed to allow for increased profits, now the margins are bigger and they don't want to deliver to the masses because it will eat into their margins if they produce more. They have limited choice and spec and are having s great time, we need china to come into the space and make it competitive.

[–] [email protected] 3 points 1 year ago

That's what I was saying too. The market has vanished because there is no supply

[–] [email protected] 3 points 1 year ago* (last edited 1 year ago)

'Jahreswagen' is the true base.

New car driven by employees, low miles, sold second hand by the manufacturer. Some have very low mileage, but still the price is significantly cheaper. It's an open secret that it's nothing more than a way to offer price differentiation.

That and dacia.

[–] [email protected] 1 points 1 year ago

I don't have a car, all I would use it for is road trips, moving house, transporting family. All that can be done with renting/taxi. That said...some places have no public transit, people will still buy cars and it is a key EU industry, so it's still something to worry about