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China is driving away with the future while America spins its wheels.
The average American makes about eight times more than the average urban Chinese resident. Last year, about 8% of new car sales in the U.S. were electric vehicles compared to over 28% in China. It makes the argument look really weak that electric vehicles are too expensive for Americans to buy. Political moves to roll back EV incentives and fuel economy standards have further slowed U.S. adoption. Meanwhile, streets in China are filled with sleek, tech-heavy electric cars that are rapidly replacing gas-powered vehicles. The cleaner air and modern vibe showcases what a large-scale shift to electric mobility can achieve.
This has led to a lot of interesting social media buzz about the new electric vehicle lifestyle in China. Here’s a recent, thoughtful post on Reddit by MK_0101 with a ton of responses about Chinese attitudes about EVs.
“I am 28 years old and live in Jiangxi, China. Last year, I purchased a Lynk & Co 08 EM-P, a plug-in hybrid SUV, for 210,000 RMB ($29,500). Due to the frequent long-distance travel required by the construction industry, I opted for a hybrid rather than a pure electric vehicle to avoid spending time charging at service areas during trips. I have driven 12,500 miles so far without any issues. The only frustration is the intense price war, which has reduced the price of this car by $2,800 (equivalent to one month’s salary) in just half a year. The car has an electric range of 150 miles, but the actual range is around 110 miles. I mostly use a home charger and free electricity at construction sites, making urban driving essentially free for me.
Most commercial charging stations charge $0.14 per kW, and it costs $5.50 to fully charge the car’s battery. Charging stations are ubiquitous in China, so even without free electricity, I can drive in the city at a low cost. This is also the main reason why most Chinese people buy “new energy vehicles”; our gasoline prices are too high (gasoline, as a strategic resource, is controlled by the state).
Currently in China, urban young people will definitely buy a car before getting married, and this is true for my friends as well. Since we all come from ordinary working families, our car budget ranges from 100,000 ($14,000) to 200,000 RMB ($28,000), which can represent most of the young population in China.
Five years ago, people would prioritize brands like Volkswagen, Toyota, Honda, and Nissan, which were known for their fuel economy and reliability in China. Nowadays, if someone spends 100,000 RMB on a Volkswagen Sagitar, Toyota Corolla, Honda Fit, or Nissan Sylphy for family use, they would be considered foolish for paying a premium to “enjoy” the markup of foreign manufacturers and getting an inferior product.
In terms of new energy vehicles, as reflected in sales, BYD is unquestionable. Unlike other manufacturers, it has gained the recognition of most older generations, which is extremely important for family purchases. This is largely due to the media’s patriotic propaganda for BYD, making it the “Huawei” of the automotive industry.
Next are new energy vehicles produced by traditional Chinese car companies and their subsidiaries, such as Geely, Chery, and Great Wall Motors. The main reason for choosing them is distrust of newly established new energy car companies, as their production capabilities have not been tested by time. After all, we have experienced numerous car manufacturers that went bankrupt producing junk to defraud national subsidies.
Therefore, choosing traditional car companies to buy new energy vehicles is a safe choice. Lastly, there are emerging car companies like NIO, Li Auto, XPeng, and Xiaomi, whose models are known for their intelligence, entertainment, and luxurious interiors. To be honest, they have captured the hearts of most young people. If I had $35,000 and was not influenced by my parents, I think 99% of young people would choose the Xiaomi Su7.”
Roguewave1 responded with:
“$0.14/kW at public charging stations tells me more than anything else about the vehicle landscape in China.
That’s less than what I’d pay at home [in the U.S] all-in.”
Jammyboot noted that EVs work in China even with lower purchasing power:
“Not sure what your conclusions are, but just wanted to add that Chinese incomes are a lot less than American incomes so that should play into any cost comparisons.”
MK_0101 made a comment about long-term gasoline prices in China:
“The price of gasoline fluctuates with the international market, but it tends to go up more than it goes down.”
Yes, both governments subsidize industries, but the Chinese subsidize the future while America subsidizes the past. The U.S. federal government distributed approximately $2 billion in electric vehicle tax credit in 2024, and paid over $10 billion to the already highly profitable fossil fuel industry.
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Home Grown
Tesla may have been the first mover, but Chinese EV giants like BYD and Nio have taken the lead. BYD recently surpassed Tesla in global EV sales, powered by China’s homegrown supply chain and vertically integrated manufacturing. Other companies like Nio are distinguishing themselves with innovations such as battery-swapping technology, offering a fully charged battery in less than three minutes through a growing network of over 3,000 stations.
Factories of the Future
At Nio’s Hefei plant, the future of manufacturing is already here. Around 90% of components are built within a mile of the factory. Robots glide silently through assembly lines, performing everything from logistics to inspections. Workers step in only at the final stages. This level of automation and localization slashes production costs and timelines, giving China a serious edge in both speed and precision.
Old Habits Versus a Modern World
Experts point out that U.S. consumers have a multi-generational attachment to traditional cars, often prioritizing utility and brand loyalty over technology. In China, where car culture is newer, buyers are more drawn to the latest tech-focused vehicles. This cultural difference is giving Chinese brands the freedom to innovate and buyers the willingness to try.
Environmental and Industrial Leadership
Beyond competition, this is about the climate. China’s electrification surge is helping cut one of the world’s largest carbon footprints. Scientists agree that EV adoption is critical to addressing the climate crisis. Observers warn that if the U.S. doesn’t become more serious and focus, it will fall behind in both environmental responsibility and industrial strength. If the U.S. is serious about leading, it needs to elect serious leaders.
Here Are the Specific Figures
In 2024, the median income for an American was $60,700 when the median income of an urban Chinese resident was about RMB 54,188 ($7,522 USD). Also in 2024, 8.1 % of all new car sales in the U.S. battery-electric vehicles (BEVs), not counting hybrids or plug‑in hybrids (PHEVs). In China, about 28.7 % of new passenger vehicle sales were EVs.
The U.S. federal government distributed approximately $2 billion in advance point-of-sale electric vehicle tax credit payments to consumers purchasing new and used EVs, in 2024 according to Treasury Department data. This figure reflects credits worth up to $7,500 for new EVs and up to $4,000 for used EVs.
The fossil fuel industry receives billions of dollars in subsidies from the U.S. government each year through a combination of tax breaks, direct funding, and regulatory loopholes. According to estimates by organizations like the International Monetary Fund (IMF) and Environmental and Energy Study Institute (EESI), U.S. fossil fuel subsidies total between $10 billion and $20 billion annually in direct federal support, and hundreds of billions more globally when including externalized costs. Externalized costs are the real economic, environmental, and health impacts of fossil fuels that are not paid by the industry, but instead are passed on to the public through taxes, higher healthcare costs, and environmental degradation. Examples of externalized costs are higher healthcare costs from pollution, climate-related disasters, military spending to protect oil interests, and environmental cleanup.
Please Drop Your Thoughts in the Comments Below
If EVs are affordable for young professionals in China, why do so many Americans still see them as out of reach?
Would more Americans go electric if charging cost just $5 like in China? What’s stopping us?
Chris Johnston is the author of SAE’s comprehensive book on electric vehicles, “The Arrival of The Electric Car.” His coverage on Torque News focuses on electric vehicles. Chris has decades of product management experience in telematics, mobile computing, and wireless communications. Chris has a B.S. in electrical engineering from Purdue University and an MBA. He lives in Seattle. When not working, Chris enjoys restoring classic wooden boats, open water swimming, cycling and flying (as a private pilot). You can connect with Chris on LinkedIn and follow his work on X at ChrisJohnstonEV.
Image sources: Lynk & Co media kit, Geely media kit
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Source: torquenews.com
