BYD's Denza Z9GT costs €39,700 in China and €120,000 in Europe

BYD's Denza Z9GT sells for €39,700 in China but €120,000 in Europe. Tariffs, VAT and protectionism explain the price gap European consumers are paying.

English · Original discussion in Spanish · Published

The Denza Z9GT: €39,700 in China, €120,000 in Europe

The very same vehicle, BYD's Denza Z9GT, sells in China for €39,700 while in Europe it costs €120,000. The difference is not a matter of costs: it is the premium European consumers pay for a cocktail of tariffs, VAT and disguised protectionism.

The VAT calculation that doesn't lie

If the car were sold at the Chinese price (€40,000), VAT at 21% would be €8,400. At the European price of €120,000, VAT amounts to €25,200. The tax bill triples, and the taxman wins. But it is not just the tax: import tariffs on Chinese cars (10% for electric passenger cars) and technical barriers inflate the final price.

Protectionism that backfires

Europe built its advantage on diesel, which served as a wall against Asian engines. Now that China leads the electric market, that barrier has been blown apart. Meanwhile, German manufacturers sell a Golf GTI that costs €8,000-10,000 to build for €55,000-60,000. The same overpricing logic, but with a German stamp.

With these mark-ups, the old saying about gulling someone should be updated. The question is how long European consumers will keep paying three times as much for the same technology.

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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (10 replies).

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