Chinese auto brands sell their electric cars at inflated prices, and other manufacturers should follow suit. Tesla and Volkswagen profits are falling. Automotive journalist Gert Verhoeven is surprised by such practices.
Hear the full conversation here am working With Gert Verhoeven:
In the news: Tesla’s profit margin shrinks from 25 to 18 percent. Nevertheless, the company’s sales remain healthy, especially when compared to a European operator such as Volkswagen.
- Verhoeven: “Discounts are being rolled out at the moment, especially in the Chinese auto market. Tesla, like other non-Chinese manufacturers, is under tremendous pressure.
- “A Volkswagen ID that costs 46,000 euros with us is sold in China for 17,000 euros. Volkswagen says that the price is determined in terms of marketing by what the market can afford. There are always big price differences between different markets in the automotive sector. But if this is too much, you can ask yourself if these expensive cars are not brought to the market with us.”
- Tesla has production facilities, which is a strategic advantage over a number of European players that are still developing to create mass production. The European challenge for the next 20-30 years will be the procurement of raw materials. Europe wants to play a leading role when it comes to emissions and the environment, but it loses sight of the fact that we need technology and raw materials from China for this,” Verhoeven concludes.
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