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The company that owns Volvo is selling a 665 kilometers (413 miles) range EV sedan in China for less than $25,000 (insideevs.com)

submitted 10 months ago by Lugh to c/futurology

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[–] aodhsishaj@lemmy.world 1 points 10 months ago (1 children)

The exchange rate does not directly correlate to purchasing power. There are many factors that go into it.

[–] Buelldozer@lemmy.today 8 points 10 months ago* (last edited 10 months ago) (1 children)

The other poster didn't say anything about the exchange rate, they said Purchasing Power. According to OECD (2024), Purchasing power parities (PPP) (indicator). doi: 10.1787/1290ee5a-en (Accessed on 09 January 2024) the PPP (Purchasing Power Parity) between USD and the Yuan was 3.989 for 2022. So a 25k vehicle in the PRC is basically a 100k vehicle in the USA. You can purchase some excellent EVs in the United States for $100,000.

In fact the article is guilty of doing exactly what you're talking about! Doing a direct conversion from RMB into USD without adjusting for PPP, basically throwing out all CoL differences, is what leads to stupidity like this article.

[–] aodhsishaj@lemmy.world 2 points 10 months ago

Yes, I read the article where they only provided the exchange rate.