sales in the U.S., it’s been a good year for some Chinese rivals. The country’s biggest automaker, BYD, surpassed its American competitor globally in BEV (electric and hybrid) sales.

Still, that wave of good fortune has not spread evenly across China. While BYD tops the market and makes plans to enter Europe, smaller Chinese automakers like Li Auto struggle to keep up.

Like American EV startups, supply chain issues the new company at the ropes.

Jerry

, your car insurance super app, dug into the details to help explain.

Li Auto forced to pull a Rivian

After a rockstar initial public offering (IPO) last November, U.S. EV startup Rivian struggled to find the materials to keep up with demand and was forced to slice its projected 2022 production numbers to a measly 25,000. Now, nearly a year later, Li Auto is forced to do the same.

The new EV maker announced at the end of September that it will drop its intended third-quarter deliveries to 25,500 rather than the 27,000-29,000 units

The Street

says the company originally planned to make.

Supply chain problems were exacerbated this year by China’s continued zero-COVID policy. Lock-downs forced factory closures across the industry, affecting production for domestic brands like Li Auto and foreign companies like Tesla alike.

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China continues to win the EV race

Despite the productions issues facing the Chinese auto industry, the country remains by far the largest electric vehicle market in the world. Some of its

automakers

, like BYD, are even making their way into other markets like Australia and Europe.

The country’s strength in the growing industry is in large part the reason for President Biden’s recent edits to the EV tax credit plan. The credit now favors vehicles assembled in the U.S., an obstacle that’s kept China’s automakers from offering their models to Americans.

Tesla, which had long surpassed the credit’s previous sale-number limits, could benefit most from the change, even as it works to increase its presence in China and Europe.

But the U.S. government isn’t the only one helping its EV industry along. The Street says China recently announced that EVs will be exempt from the national sales tax until the end of 2023.

MORE:

Tesla Raises Electric Vehicle Prices in the U.S. and Steadies Them in China

China’s lead comes down to cost

A lot of factors are at play when it comes to why China has adopted electric vehicles faster than the U.S., but one key influence is the price range of EVs in both countries.

While a few cheaper models are available this side of the Pacific, most EVs sold here have starting prices over $40,000. Chinese automakers, on the other hand, have focused on making EVs affordable to a wider audience.

But if the high prices for EVs don’t scare you off, you can save a lot of money by shopping for

car insurance

with Jerry. A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and can even help you cancel your old policy.

Jerry customers save an average of $887 a year on car insurance payments!

MORE: Can the American Electric Car Industry Catch Up With China?

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