Is China's EV making fuel cars cheaper and cheaper?

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The price of Mercedes-Benz C200L has dropped from 4.6W dollars  to 2.79W dollars yuan. The discount is more than  1.79w dollars. Mercedes-Benz's quarterly sales in Asia also fell by 15% year-on-year. This is related to the price war of electric vehicles in the Chinese market in 2024. A large number of consumers have placed orders for new energy vehicles under the attractive sales strategy.


How can China win the battle of EV

China's long-term strategy

• Why can China win the EV war in the technological battle? As early as 2009, the Chinese government began to provide a series of subsidies for new energy vehicles, including car purchase subsidies, charging infrastructure construction subsidies, new project funding, tax incentives and many other contents.

• The purchase subsidy for each of these vehicles can be as high as 100,000 yuan. The subsidy is adjusted every year. Although it has been reduced a lot, the subsidy will not stop until 2024.


The contempt of Europe and America towards new energy vehicles


• On the contrary, the development of EV has been hindered in the United States. The United States is the third largest oil producer. The development of EV affects the oil consumption in the United States and also affects the jobs of traditional auto workers. Both the government and the media are not so friendly to the development of EV. China's EV-friendly environment has attracted new energy vehicle companies. On January 7, 2019, Tesla's Shanghai Super Factory began to be built. The Bank of China also generously provided a loan of 3.5 billion yuan for the construction of Tesla's Shanghai Super Factory.

• Therefore, EV has developed rapidly in the Chinese market, and its rapid development momentum has surpassed that of Europe and the United States.


Which car models have reduced their prices


• In 2024, China's new energy vehicle sales ranked first, and even more amazingly, it was almost close to the total sales of the top ten countries in the world.

• The rising sales of new energy vehicles will inevitably squeeze out the market of traditional vehicles, and the more attractive functions and innovations of new energy vehicles seem to have made it a fact that consumers have lost their love for fuel vehicles. Although fuel vehicles have made a lot of efforts to stimulate sales.

• The price reduction of BMW 3 Series has reached about 80,000 yuan, and the discount of Mercedes-Benz E-Class has reached 110,000 yuan. The 110,000 RMB discount alone can make a lot of choices for purchasing EV in China. Leapmotor C11 new energy medium SUV is only 110,000 yuan. BYD Yuan UP 301Km reference price 96,000 RMB Fengxing Leiting 410 100,000 yuan.



How did consumers react after the price reduction?


• A working-class Chinese office worker earns about 5,000-10,000 yuan per month. How much can he save on living costs by choosing a new energy vehicle? For example, for an office worker who drives 80 kilometers a day, based on a fuel consumption of 7L per 100 kilometers and a fuel price of 7.72 yuan in China, the annual fuel cost is 13,500 yuan. If he charges at home, the electric car can save about 10,000 yuan a year compared to the gasoline car; if he charges outside, he can also save 6,650 yuan!

• For an office worker, one year is equivalent to an extra month's salary income. Choosing new energy vehicles may be a natural choice for people to improve their lives.



Will these cars continue to be discounted?

• New energy vehicles have been growing at an alarming rate in recent years. Almost one out of every two cars on the road in China is an EV. Fuel vehicles seem to be slowly disappearing from the stage of history.

• However, since fuel vehicles still have advantages, such as stable endurance, no impact from temperature, and convenient refueling, people who like long-distance travel will still choose fuel vehicles. With the continuous development of technology, how long can fuel vehicles last?