One of the major reasons China’s EVs are so affordable is that companies like BYD have mastered in-house production. By manufacturing nearly every component internally, Chinese EV makers cut out the middleman, saving on outsourcing costs. BYD’s “E-Axle” is a great example—it combines eight critical components, from the motor to the battery monitoring system, into one streamlined unit. This integration slashes manufacturing costs and complexity, helping drive down the price for consumers.
Mass Production to be Mass Affordable
Chinese EV makers build at a staggering scale, allowing them to reduce costs through sheer volume. For example, BYD’s mass production of the Atto 3 has helped it reach a price point of under $20,000 in China. The more cars produced, the lower the per-unit cost, making it possible to offer high-performing vehicles at prices that appeal to a broader market.
Quality Standards
While Japanese automakers often focus on traditional quality, Chinese companies like BYD emphasize affordability and accessibility. This shift in priorities is one reason why China has gained such a competitive edge in the EV market. For many consumers, particularly in price-sensitive regions, the balance of quality and affordability offered by Chinese EVs is the perfect fit.
Government Support
China’s government has invested heavily in the country’s EV infrastructure, providing tax incentives, subsidies, and grants to boost local production. This support reduces development costs for companies and encourages partnerships with battery manufacturers like CATL. The latter supplies fast-charging batteries to many Chinese EV makers, including BYD. These partnerships and government backing play a vital role in keeping production costs low, making EVs even more accessible.
China’s approach to EV manufacturing has fundamentally changed the industry’s landscape. By prioritizing efficiency, scale, and affordability, Chinese automakers are setting new standards. They do everything possible to produce and sell affordable electric vehicles on a global scale.
