Electric-vehicle prices compared to gas-powered models are still an obstacle to adoption, especially with China in the picture.

A Jato Dynamics study illustrates the challenge for U.S. legacy automakers to compete with China-based competitors’ advantages.

The gap between EV and internal-combustion-engine vehicles has narrowed significantly, though, representing a 15% differential in the U.S. last year compared to a 53% gap in 2018, according to Jato.

But unlike other regions, the narrowing difference resulted from a 25% drop in EV prices here last year. By contrast, Europe’s EV-ICE price gap has shrunk due both to rising ICE vehicle prices and falling EV prices, Jato says.

Still, EVs sold by Western automakers are selling at a premium to models sold in China, according to the study. In the U.S., the average retail EV price was 109% above that in China. 

“China is already one of the major players in the automotive space, and this is not something that is going to change any time soon. After all, a Chinese BEV is likely to be more appealing to consumers than a comparable model from a Western automaker, simply due to the enormous price difference,” said Jato Global Analyst Felipe Munoz said in a press release on the report.

The difference explains why the Trump administration has already planned to start imposing tariffs on goods from the Asian powerhouse on Feb. 1, as well as those from Mexico and Canada.

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