Here’s why this car is twice as expensive in Europe as in China
This page is translated from the original post "Voici pourquoi cette voiture est deux fois plus chère en Europe qu’en Chine" in French.
- 09/09/2025 7:42
The Chinese manufacturer GAC has just launched its electric SUV Aion V in Europe. A brief overview of the pricing situation is necessary.
Priced at €35,990, the Aion V is competitive at first glance compared to similar European models; however, this price highlights a striking gap. In China, the same vehicle is sold for around €15,000. The European version is therefore nearly 2.5 times more expensive!
This gap is primarily explained by the European Union’s trade policy. In response to the rise of Chinese manufacturers, Brussels has decided to impose increased tariffs on imported electric vehicles. These surcharges, exceeding 30% in the case of GAC, aim to protect the European automotive industry, but they considerably raise the final price paid by consumers.
No sales without approval and after-sales service
Additionally, there are logistical costs. Transporting a vehicle from China to European dealerships involves long maritime transport, storage, and complex distribution. Each stage incurs additional costs, which directly affect the retail price.
Approval represents another unavoidable expense. To be marketed in Europe, vehicles must meet strict standards regarding safety, environment, and connectivity. Conducting tests and obtaining certifications entails significant investments, which are included in the sale price.
However, the most costly challenge remains the establishment of a sales and after-sales network. Unlike well-established European manufacturers, GAC must build dealerships from scratch, train its teams, set up parts supply platforms, and ensure quality after-sales service. This deployment strategy requires massive investments, essential to reassure customers but resulting in significant additional costs.
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Finally, GAC adopts a deliberate positioning. To be seen as a credible alternative to local brands, the company cannot settle for a cut-rate price, risking being labeled as low-cost. Aligning its prices with those of European competitors is also a marketing choice… at the consumer’s expense.
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