Quote:
Originally Posted by whitev70r
1. We (Canada) also subsidized EV's produced here in NA with incentives between $5000-9000. Probably also offered lots of incentives for car companies to build a plant here in terms of taxes, etc. Might not be as much as China but still ... both sides have subsidized their own production of EV's.
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The difference lies in the difference in size of the subsidy, which is on orders of magnitude between China and western countries. In China's case, some quick googling suggests that between 2009 - 2023, China spent ~USD $231B on the Chinese EV sector.
https://www.csis.org/blogs/trustee-c...d-yet-striking
By comparison in the US, since 2002, Tesla received the most subsidy valued at USD $2.5B, while Ford and GM were the next highest at USD $1.5B and $1.1B, respectively.
https://financialpost.com/commoditie...-in-u-s-states
For the record, Canada is giving up to Cdn $2.5B in tax credits to the Honda EV plant in Ontario. Stellantis gets up to Cdn $15B, and VW gets Cdn $13B.
So from the numbers alone, China is very roughly providing ~45x the amount of subsidy to its EV sector compared to what the US gov has provided to its top 3 EV manufacturers. Compared to Canada, China has provided ~10x more in subsidy than what Canada has committed to subsidize over the next 8 years or so.
Also, in China's case, they are handing out subsidies to companies with little to no established track record of manufacturing anything, so there ends up being a lot of scams -- ie. scamming the party for EV funding. Many smaller EV companies are unable to produce more than 10 - 20k cars (in vehicle count) in a year, effectively making them little more than boutique manufacturers. And then once the gov funding runs out, the EV company goes belly up. In US and Canada's case, the subsidies are mostly provided to established players, so that's another huge difference too.