futuresearch.ai | Report ncrX

1
What percentage of Chinese households can afford the cheapest BYD electric vehicle?
$45.6 %$

$290 CNY$

$(50% CI: [242, 483])$

How much does monthly insurance for a cheap EV like the BYD Seagull cost in China?

Key Parameter	Value	Source
The average cost to insure a regular car in China $(I_{Regular Car})$	$3625 CNY$	1
Factor by which insurance costs of EVs are higher compared to regular cars $(F_{EV})$	$1.2 (50% CI: [1, 2])$	2 3
Factor to account for the cheap price of the BYD Seagull compared to other cars $(F_{cheap})$	$0.8$	Estimate

We estimate the annual insurance based on the average cost to insure a regular car and account on the one hand for the fact that the BYD Seagull is a cheap car and on the other hand for the higher insurance costs of electric vehicles (EVs).

We use the following formula to calculate the insurance cost for an EV:

I_{EV} = I_{Regular Car} \times F_{EV} \times F_{cheap} /12

Plugging in the values:

I_{EV} = 3625 \times 1.2 \times 0.8/12 = 290

Other sources imply similar prices.[4][5]

Supporting Evidence

[1]
Car insurance spending per capita is $145 USD per year. Using an exchange rate of 7.14 CNY per USD and 400M cars for 1.4B inhabitants, this gives an average insurance cost per car of around CNY 3625
www.statista.com/outlook/fmo/insurances/non-life-insurances/motor-vehicle-insurance/china
[2]
EVs are about 20% more expensive to insure
www.cnbc.com/2022/09/27/chinas-new-electric-cars-cost-more-to-insure-than-fuel-powered-cars.html
[3]
Insurance cost for EVs is 20% to 100% more expensive than for regular cars
www.insurancejournal.com/news/international/2024/04/05/768245.htm
[4]
Car insurance for a BYD Seagull is between 3k and 4k CNY per year
chejiahao.autohome.com.cn/info/15988334/
[5]
Insurance costs for a BYD Seagull are usually between 3000 and 4000 CNY per year.
chejiahao.autohome.com.cn/info/15988334/

1
What percentage of Chinese households can afford the cheapest BYD electric vehicle?
$45.6 %$