Chinese manufacturers continue to make huge strides in their ability to produce competitively priced electric vehicles (EV), sparking a shift in market dynamics, according to JATO Dynamics’ latest report EV price gap: A divide in the global automotive industry.

According to JATO data, while the average retail price of electric cars available in China was 37% and 26% higher than those available in Europe and the US in 2015, this trend has since reversed with Chinese OEMs continuing to accelerate ahead of their Western counterparts in EV production.

In the first half of 2022, the average retail price of a battery electric vehicle (BEV) in China fell to €31,829, while rising to €55,821 in Europe and €63,864 in the US over the same period. A year later and the price gap has further widened, with the average retail price of an electric car available in China now less than half the price seen in both Europe and the USA.

In the first half of 2023, an electric car cost €31,165 in China, €66,864 in Europe, and €68,023 in the US.

Despite efforts by Western OEMs to produce more affordable EVs, these models continue to cost more than their gasoline and diesel equivalents. Today, consumers would need to spend €18,285 and €24,400 more to buy an EV in Europe and the US, respectively – this is 92% and 146% more than they would need to pay for the cheapest combustion car available.