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China EV production costs 35 percent lower than Europe\'s, battery supply chain and development speed drive gap

Production costs for Chinese-brand electric vehicles made in China are on average 35 percent lower than comparable European models, a report cited by InsideEV said. Consulting firm AlixPartners estimated costs at about $20,000 versus $31,000 in Europe. It said the gap reflects structural advantages beyond subsidies, including battery supply chains, energy costs and faster development known as “China speed”. The report warned tariffs alone are unlikely to erase China’s cost edge.