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Some have warned that these substantially lower prices are due to state support that artificially makes the cars cheaper. From 2009 to 2022, China’s government gave $29 billion in tax breaks and subsidies to domestic EV manufacturers, especially as it relates to batteries, the most expensive part of an EV, according to estimates by MIT Technology Review. Since last year, however, the government started to phase out its EV subsidies.
Some experts like Steve Christensen, the executive director of the Responsible Battery Coalition, said Chinese companies’ ultimate goal is to crowd out competitors.
“The Chinese don’t care about making a profit, per se. They just want the market share, and they’ll do anything to get it. They’re playing to win,” he said.
