this post was submitted on 10 Dec 2023
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If you see that European car makers sell the same car in China for less than half than they charge at home, you know they are basically milking us just for extra profit.
Not true. Most products aren't the cost of the materials. There are a lot of included expenses in the price of a product like the cost of labor. They're also not the same cars.
I am well aware that there are costs beside materials and labor. In my company, I'm part of those other costs - I'm R&D. The point is still: Why shall we bear all those costs and others don't? Don't expect people being happy about being handled gross unfair.
Yes, there are differences. But they are small, and could be incorporated in a low-cost version of European cars, too - if they actually want a low cost version here.
That sounds like standard supply demand. If you can bear it, and there is no alternative, you will. But moreover as was mentioned there are reasons that may require a product being different prices in different markets as operating expenses are not the same. The simple cost of launching a product in different markets incurs different costs, and thus different prices. That's a trivial example, and with vehicles it gets really complex at the regulatory level, especially in regulatory-rich countries which are common in the EU.
And that is the point that will break the European car makers necks. The Chinese just start being alternatives, just like Japanese cars were in the 80s and 90s.
To give it credit, Japanese cars are now among the best in class, and can be enjoyed on a global market at a "reasonable" price. Took them a few decades to get there though. When/if Chinese manufacturers get to that level - that would be a win for the common consumer anywhere. And European companies with their trend to sell less, but more expensive, cars, will likely be outcompeted.