Turns out selling more units can lead to higher revenue

As you said in another comment, China is supporting their electric vehicle industry right now, because it allows them to achieve more economic control of a major growth industry, by forcing other non-Chinese car makers to lower their prices, raise quality, compete on some other basis, or go under.

It's worth it to their govt to fight climate change, too. If you are cynical about their motives, think of this as getting international brownie points, but it has been a consistent goal of their government for over a decade now.

Along with the subsidies, there are conventional economic advantages for Chinese EV builders.

They have a massive domestic market to sell their vehicles, so they can build huge manufacturing capacity and be reasonably sure that demand will meet supply, even if the international market somehow does not work out.

I am largely positive about China's recent actions, and I see a lot of lessons to be learned from their modern economic system. However, I treat them with realpolitik in mind, as I do all countries. Countries almost always act in their own interests, unless they are taken over by idiots like the USA. Those who trust in China's good intentions without criticism are missing the point, just like those who blindly support the US or Australia any other country.

You are right to be skeptical, but you shouldn't let that blind you to the real situation, and that quality can be found for less money if the circumstances allow.

Ideally, btw, I would absolutely love to buy a Holden Commodore electric station wagon when I replace my current beloved old Executive from 2001. But there has been a succession of shite governments who were short-sighted enough to think that supporting a domestic car industry was unnecessary. The Coalition is to blame far more obviously than Labor, but they both fucked up in this area to a degree.

It's too easy on the left to say that we shouldn't support a big corporation with taxpayer money to keep a domestic business alive, if you don't know why a domestic manufacturing capacity is important to preserve. I am not proud of my side of politics on that one.

Edit: Oh yeah, forgot another one: China leads the world in battery tech at the moment, unequivocally. They can make batteries for cheaper, so they can spend more on the rest of the car and still make money.

Because undercutting your competitors is a great way to enter new markets. Japan did the same thing in the 70's and korea in the 90's.