More Car, Less Cash

Now, I don't want to act too surprised, we all know that production costs in China are much lower than in Europe. We can't really complain, you shouldn't expect to have the work done here at decent salaries with a state providing a nice security blanket AND getting cheap products. But the message still hits home when you are confronted with the specs of a car that you know quite well and realize just how big the differences are.

What is so different about the Eastern variant of the iX3? For starters, it rides on a longer wheelbase. With 10 cm going mostly to the rear passengers, I really don't know why we settle for the shorter so called premium cars. It probably all boils down to the cultural aspect of things, in Europe the driver comes first and passengers are literally just along for the ride. Better comfort in the rear is not the only advantage playing out in the comparison. The Beamer "China style" is also much better equipped from the get-go with a Harman Kardon sound system, three zone climate control, all around seat heating and ventilated front seats on the base model. While the battery choices are not perfectly comparable, they do sit in the same ballpark as those of Europe or the US. The LFP chemistry for the entry level model not necessarily being a downside as they should suffer from less degradation. A top end automated driving suite adapted to the local market in collaboration with Momenta is also available, albeit as an option.

To add insult to injury all those extra goodies come at a much lower cost to consumers. The top spec iX3 50L goes for around €43.200!! This is comparable to the, as said shorter and less well equipped, launch version iX50 that we have to put down €70.300 for in Germany. Just think that we were congratulating BMW for keeping the price of the much better new iX3 level compared to the previous generation only a few months ago. I feel like a bit of a fool now😉.

The shocking realization of the cost gap is also a sobering reminder of the power of competition. Manufacturers that want to keep their sales alive in a cut-throat market like China really have to step up their game. While there are a lot of experts out there that predict the current situation with over 100 mostly electric vehicle producers is simply not sustainable, the consumer is surely spoiled rotten while the ride lasts.