Europe's carmakers target China's cheap EV edge at Munich car show
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MUNICH :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, industry analysts and 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 CEO Luca de Meo told Reuters at the car show, adding when manufacturing costs decline, prices will also go down.
De Meo said as part of the French carmaker's drive toward price parity with the Chinese, its R5 EV due out next year will be 25 per cent to 30 per cent cheaper than its electric Scenic and Megane models.
Chinese EV makers, including BYD, Nio and Xpeng are all targeting Europe's EV market, where sales soared nearly 55 per cent to about 820,000 vehicles in the first seven months of 2023, making up about 13 per cent of all car sales.
