Chinese car makers can build an electric vehicle for €10,000 ($10,618) less than European counterparts, an overwhelming cost advantage that will put pressure on European manufacturers in their home market, the head of vehicle supplier Forvia has said.
As European consumers seek cheap EVs, Forvia chief executive Patrick Koller told the CES convention in Las Vegas on Wednesday that China was producing “good vehicles” and Europe would not be able to stop imports.
The issue is “more dangerous” for Europe than the US, Mr Koller said, as high duties have limited China's US market share.
Forvia, the company created when French car supplier Faurecia took 82 per cent control of German supplier Hella, is the seventh largest vehicle component maker in the world. It supplies many Chinese car makers, including low-cost EV leader BYD.
While the average price of electric cars has risen in Europe since 2015 from $51,424 to $58,652 ― and $53,038 to $63,864 in the US ― it has dropped in China to $33,440 from $70,203, taking it below the price of petrol cars, according to a study by JATO Dynamics, which provides analysis on industry trends.
Chinese EV makers can produce vehicles for less because they have lower research and development costs, lower levels of capital spending and lower labour costs than rivals in Europe, Mr Koller said.
Europe is relatively open to vehicles imported from China, and Chinese vehicle makers as well as global manufacturers such as Tesla are rushing to step up shipments.
Countering perceptions Chinese goods are lower quality, they have earned five-star safety ratings from European regulators.
China has a roughly 5.8 per cent of Europe's EV share, according to French auto consultancy Inovev, which predicts a steep rise in the coming years as Chinese brands build more lower-cost models.
By contrast, high duties in the US on Chinese-made vehicles have so far kept China's share of the American car market negligible.
The outlook for global vehicle demand in 2023 is uncertain, Mr Koller said.
An end to the war in Ukraine would lift prospects, but a deeper, protracted conflict could create a “far darker” scenario.
Forvia will invest more in the US, in part to take advantage of federal incentives provided in the Inflation Reduction Act signed into law in August, Mr Koller said.
Forvia sees opportunities in supplying fuel cell technology for North American pick-up trucks, and Mr Koller said he expects a fuel cell pick-up to be launched in the US by 2025.
The company has invested in fuel-cell technology company Symbio, and Stellantis, which owns the Ram pick-up brand, said last month it was also in talks to invest in Symbio.
Forvia is on track to meet goals of boosting revenue to €30 billion by 2025, and selling €1 billion of assets this year, Mr Koller said.
It can execute its asset sales and cost-saving even though it does not control 18 per cent of Hella’s shares.
Activist hedge fund Elliott Management holds a 10.75 per cent stake in Hella.
Mr Koller said he is in no hurry to acquire the remaining Hella shares, given Forvia’s existing debt.
Best-selling electric cars in the UK in 2022 — in pictures
Company%20profile
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The specs: 2018 Kia Picanto
Price: From Dh39,500
Engine: 1.2L inline four-cylinder
Transmission: Four-speed auto
Power: 86hp @ 6,000rpm
Torque: 122Nm @ 4,000rpm
Fuel economy, combined: 6.0L / 100km
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The bio
Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district
Was a middle distance state athletics champion in school
Enjoys driving to Fujairah and Ras Al Khaimah with family
His dream is to continue working as a social worker and help people
Has seven diaries in which he has jotted down notes about his work and money he earned
Keeps the diaries in his car to remember his journey in the Emirates
'Morbius'
Director: Daniel Espinosa
Stars: Jared Leto, Matt Smith, Adria Arjona
Rating: 2/5
Zayed Sustainability Prize
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
If you go
The Flights
Emirates and Etihad fly direct to Johannesburg from Dubai and Abu Dhabi respectively. Economy return tickets cost from Dh2,650, including taxes.
The trip
Worldwide Motorhoming Holidays (worldwidemotorhomingholidays.co.uk) operates fly-drive motorhome holidays in eight destinations, including South Africa. Its 14-day Kruger and the Battlefields itinerary starts from Dh17,500, including campgrounds, excursions, unit hire and flights. Bobo Campers has a range of RVs for hire, including the 4-berth Discoverer 4 from Dh600 per day.
Director: Paul Weitz
Stars: Kevin Hart
3/5 stars
The years Ramadan fell in May
Killing of Qassem Suleimani
Scores in brief:
Boost Defenders 205-5 in 20 overs
(Colin Ingram 84 not out, Cameron Delport 36, William Somerville 2-28)
bt Auckland Aces 170 for 5 in 20 overs
(Rob O’Donnell 67 not out, Kyle Abbott 3-21).
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
Schedule for Asia Cup
Sept 15: Bangladesh v Sri Lanka (Dubai)
Sept 16: Pakistan v Qualifier (Dubai)
Sept 17: Sri Lanka v Afghanistan (Abu Dhabi)
Sept 18: India v Qualifier (Dubai)
Sept 19: India v Pakistan (Dubai)
Sept 20: Bangladesh v Afghanistan (Abu Dhabi) Super Four
Sept 21: Group A Winner v Group B Runner-up (Dubai)
Sept 21: Group B Winner v Group A Runner-up (Abu Dhabi)
Sept 23: Group A Winner v Group A Runner-up (Dubai)
Sept 23: Group B Winner v Group B Runner-up (Abu Dhabi)
Sept 25: Group A Winner v Group B Winner (Dubai)
Sept 26: Group A Runner-up v Group B Runner-up (Abu Dhabi)
Sept 28: Final (Dubai)
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
COMPANY%20PROFILE%20
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