Tag Archives: Car prices

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Europe vs. China, Round Two: This Time It’s About EV Prices

For a brief moment, it looked like the European Union and China might be done trading punches over electric cars. This week, both sides announced they’ve agreed on steps to defuse their simmering dispute over Chinese EV imports—steps that sound cooperative on paper but leave plenty of sharp edges in practice.

The headline is this: instead of simply slugging Chinese-made electric vehicles with tariffs as high as 35.3 percent, the EU is preparing guidelines for minimum import prices. In theory, those price floors are meant to neutralize the effect of Chinese government subsidies without slamming the door entirely on affordable EVs. In reality, it’s a complex compromise that raises as many questions as it answers—starting with whether those tariffs actually go away.

So far, no one’s saying.

China’s Ministry of Commerce framed the agreement in grand terms, calling it a win for “the healthy development of China-Europe economic and trade relations” and for the rules-based global trade order. That’s diplomatic code for please stop escalating this. From Brussels, the message is more procedural: manufacturers can submit price undertakings, the European Commission will review them “objectively and fairly,” and everything will—supposedly—align with World Trade Organization rules.

If that sounds bureaucratic, it’s because it is. The EU’s own guidance acknowledges that today’s EV market is wildly diverse, meaning a one-size-fits-all minimum price won’t work. Instead, model-specific thresholds would be set at levels “adequate to eliminate the harmful effects of subsidies.” Translation: cheap Chinese EVs can still come in, but not too cheap.

This entire standoff exists because Chinese automakers have gotten very good—very fast—at building electric cars that undercut European rivals on price. Brussels argues that this advantage isn’t purely about efficiency or scale, but about state support. The list of alleged incentives is long and familiar: low-interest loans from state banks, discounted land for factories, tax breaks, subsidized materials, and guaranteed demand via state fleet purchases. Stack all that together, and you get EVs that arrive in Europe with price tags legacy automakers can’t easily match.

The U.S. response to the same phenomenon was blunt-force: a 100 percent tariff that effectively walls off the American market from Chinese EVs. Europe can’t afford to be that absolutist. The EU has legally binding climate targets—cutting greenhouse-gas emissions by 55 percent by 2030—and hitting those numbers requires lots of electric cars, including affordable ones. Blocking Chinese imports entirely would make that transition slower, pricier, and politically messier.

And here’s the twist that often gets lost in the rhetoric: a significant chunk of “Chinese” EV imports into Europe aren’t from Chinese brands at all. The value of battery-electric cars imported into Europe jumped from $1.6 billion in 2020 to $11.5 billion in 2023, and much of that volume comes from Western automakers building cars in China. Tesla and BMW both ship China-built EVs to Europe, which means trade barriers can boomerang back onto Europe’s own champions.

Despite the tariffs already in place, Chinese brands keep gaining ground. In the first half of 2025, Chinese-made vehicles accounted for 6 percent of total EU car sales, up from 5 percent a year earlier, according to ACEA and S&P Global Mobility. That may not sound seismic, but in a mature market like Europe, a one-point gain in a single year is significant. EU-based manufacturers still dominate with a 74 percent share, and Germany remains the production heavyweight, but the trajectory is what worries policymakers.

Consultants at AlixPartners estimate that by 2030, Chinese automakers could double their European market share to around 10 percent. That’s not an existential takeover—but it’s enough to pressure margins, accelerate price wars, and force faster innovation from incumbents.

So where does this “agreement” actually leave us? Somewhere in the gray zone between protectionism and pragmatism. Minimum price rules may blunt the sharpest edge of China’s cost advantage without fully choking off supply. They also buy time—time for European automakers to get their next-generation EVs out the door, and for Brussels to avoid a full-scale trade war it can’t really win.

In the end, this isn’t about tariffs versus free trade. It’s about control. Europe wants cheaper EVs, but on its own terms. China wants access to a massive market, but without being labeled the villain of the global energy transition. For now, both sides are pretending that carefully worded guidelines can square that circle.

Whether that truce holds once real cars—and real price tags—hit European showrooms is another story entirely.

Source: ACEA, AlixPartners

News

BMW Cuts EV Prices in China, Including a $42K Drop on the i7 M70L

Price wars used to be something Chinese automakers did to Western brands. Now, they’re something legacy automakers are doing with them.

BMW is the latest to blink in China’s increasingly cutthroat auto market, announcing sweeping price reductions across 31 models. It’s a notable move for a brand that traditionally leans on prestige and pricing discipline—and a clear sign that even the blue-and-white roundel isn’t immune to the pressures of the world’s largest car market.

The headline grabber is the BMW i7 M70L, the long-wheelbase, dual-motor flagship of the electric 7-Series lineup. Packing 659 horsepower and a neck-snapping 811 lb-ft of torque, it now costs 301,000 yuan less than before—a haircut of roughly $42,000. That’s not a gentle nudge. That’s a shove.

The deepest cut by percentage, however, belongs to the iX1 eDrive25L. BMW trimmed 24 percent off the price of the long-wheelbase compact SUV, dropping its entry point to 228,000 yuan (about $32,600). In a segment flooded with aggressively priced domestic EVs, the iX1 suddenly looks far more competitive than its badge alone would have allowed.

Officially, BMW is playing it cool. Speaking to Bloomberg, the company framed the changes as part of its “regular price management,” noting that transaction prices are ultimately negotiated between dealers and buyers. That’s corporate-speak for don’t read too much into this.

But the timing tells a different story.

China’s auto market has shown clear signs of strain, with sales declining for a second consecutive month in November, according to the China Passenger Car Association. As growth slows, automakers—foreign and domestic alike—are scrambling to protect volume, even if it means trimming margins.

At the same time, regulators are trying to keep the chaos contained. New rules prohibit automakers from selling below production cost and ban dealer incentives that push prices beneath that line, an attempt to prevent a full-blown race to the bottom.

In that context, BMW’s price cuts look less like aggressive discounting and more like a formal acknowledgment of reality. According to Yale Zhang, managing director at Automotive Foresight, the revised stickers largely reflect what customers were already paying after negotiations. In other words, BMW didn’t undercut the market—it caught up to it.

And this likely isn’t the end.

With Chinese New Year landing in February, the industry’s traditional incentive season is fast approaching. At least 14 automakers have already launched discount or incentive programs since the start of 2026, and more are expected to follow as brands try to front-load first-quarter sales.

Zhang doesn’t see the trend fading anytime soon. Promotional cycles may fluctuate, he says, but sustained pricing pressure is now a structural feature of the Chinese market—not a temporary hiccup.

Regulators remain wary. Prolonged discounting raises the specter of deflation, supply-chain instability, and downward pressure on wages—risks that extend far beyond the showroom floor.

For BMW, though, the message is clear: in China, prestige alone no longer sells cars. Even the ultimate driving machine has to sharpen its pencil.

Source: BMW

News

Used-Car Prices Keep Climbing, but EVs Are Quietly Stealing the Spotlight

For a market that spent the early 2020s setting records no one exactly wanted—sky-high prices, bare dealer lots, and shoppers fighting over off-lease Camrys—the used-car world of 2025 feels… complicated. Prices are still rising, demand is still strong, but buyers are finally pumping the brakes. And in the strangest twist of all, used EVs—yes, the same EVs struggling for attention on new-car lots—are now the fastest movers in the secondhand scene.

Welcome to the Q3 2025 used-car market, where almost everything is more expensive, shoppers are taking their sweet time, and electric cars are quietly becoming the segment to beat.

The Market Is Slowing—But Prices Sure Aren’t

Edmunds data shows the average three-year-old car spent 41 days on the lot in Q3 2025. That’s up from 37 days a year ago and marks the slowest “days-to-turn” pace since 2017. It’s not a collapse in demand—far from it. It’s simple sticker shock.

The average used price climbed to $31,067, up five percent from last year. Compare that with 2017, when similar models averaged around $21,000, and you understand why buyers are pausing to breathe into a paper bag before signing anything.

With new-car incentives returning and warranties dangling like shiny lures, more shoppers are cross-shopping used vs. new than in any period since the pre-pandemic era. The last time used-car ATPs sat above $30,000 was in 2022—right in the middle of the supply-chain meltdown.

Today? Supply is mostly normal. Prices, not so much.

EVs: The New Quick Sellers

Here’s the surprise: EVs are leaving used lots faster than anything else.

  • EVs: 34 days
  • Hybrids: 40 days
  • Diesels: 41 days
  • Gasoline: 43 days
  • Plug-in hybrids: 47 days

Yes, you read that right—plug-in hybrids, marketed for years as the “best of both worlds,” are actually the slowest to sell. Meanwhile, used EVs—long criticized for unpredictable depreciation—are suddenly the value kings.

Why? Because the numbers look awfully good.

EV Value Is Peaking Right Now

Used EVs sold in Q3 averaged:

  • 35,661 miles
  • $29,911 ATP
  • ~66% under 40,000 miles
  • ~⅔ priced between $20,000–$30,000

Across the rest of the used-car market, only 42 percent fall into that sweet-spot price band.

With EVs making up just 1.6 percent of total used inventory, the combination of low miles, strong pricing, and limited supply is creating a mini-feeding frenzy. Eight of the 19 fastest-selling three-year-old models were EVs—despite 2022 EV production being relatively low.

In other words: the deals are out there; you just have to hunt for them.

The Hot Sellers—and the Value Holdouts

The used EVs drawing the most attention aren’t obscure compliance cars—they’re mainstream, desirable nameplates:

  • Hyundai Ioniq 5
  • Volkswagen ID.4
  • Ford Mustang Mach-E

All three regularly undercut their original stickers by more than $25,000. For families, commuters, and value buyers, that kind of discount is irresistible.

But not every vehicle in the market is softening. Internal-combustion favorites such as the Toyota GR Supra and Lexus NX 350h are bucking the trend with impressively strong residuals. These models remind us that enthusiasm (and Toyota’s resale reputation) still matters.

What It All Means

The 2025 used-car market is no longer the Wild West of pandemic shortages—but it’s still pricey enough to make shoppers cautious. EVs, against all expectations, have emerged as the stealth winners: low miles, compelling prices, and rapidly growing buyer interest.

If you’re shopping for a used car right now, prepare to browse longer than usual… unless you’re eyeing an EV. Those are still disappearing fast.

Source: Edmunds