You are quite right. The Chinese EV market has learned in the past few years that the real volume is in the mid-range and entry-level vehicles, not just the expensive luxury models.
For example, BYD’s big secret to success is that it has built EVs and plug-in hybrids that are sufficient for everyday use for between $10,000 and $30,000. In contrast, Tesla started with expensive models and then gradually moved to relatively affordable vehicles.
In China, many consumers have different priorities:
Reasonable price
Low power consumption
Reliable battery
Good software and screen
300 to 500 km range for urban use
In contrast, the European and American markets have a stronger luxury branding, so 700 horsepower, 0-100 in three seconds, and a 25-speaker sound system are also sold there. As if a daily commute to the office requires a vehicle that could take you on a mission to Mars.
However, China has not completely abandoned luxury EVs. There are more in the premium segment. The difference is that their core business model is not just based on expensive cars, but also on selling mid-priced cars on a large scale.
In a sense, China has made the auto industry like the smartphone market: Most people want a phone or car that meets 90% of their needs, not a device with 500 features, 450 of which they will never use. The industry is finally catching on, although marketers are constantly fighting it.