The Chinese EV Entry into the US Market / By: Joseph Dai
Over a century has passed since Henry Ford first introduced the moving assembly line for car manufacturing in America. Since then, there have been many challengers in the American automotive market, including the Germans, Japanese, and Koreans. Now in the 21st Century, a new competitor approaches the American automotive industry. Currently, the Chinese electric vehicle industry has been growing at an exponential rate. Car magazine Autoweek states that ” China purchased 6.8 million EVs in 2022, which is 6 million more EVs than were sold in the US. ” (Lassa, 2023) For the average American consumer, Chinese EV expansion into the US isn’t necessarily bad news; Chinese EVs are generally cheaper and more technologically advanced than their American counterparts. For example, prospective car buyer Gerry Ng, says “ Once I graduate college in a few years, I will consider buying a Chinese EV as my main concern with a car is its affordability. ” Although the availability of Chinese EVs in the US offers advantages for the average consumer in terms of affordability, functionality, and enhanced tech capabilities, one has to examine the effects on the US auto industry, which employs millions of workers. Any significant market disruption could lead to millions of jobs being displaced. Consequently, the US government has enacted tariffs targeted toward Chinese automakers that have made it hard for them to compete against established car manufacturers. A Chinese autoworker, who prefers to remain anonymous, asserts that “ we [Chinese EV companies] are facing regulatory challenges as they [US automakers] are afraid of their loss of market share due to our competitive pricing and technological advancements. ” In the meantime, Chinese automakers are focusing on another North American market, Mexico, perhaps as a stepping stone into the US market at a later date. According to Fortune Magazine, in 2023 “ Mexico’s imports of Chinese cars (both EVs and traditional ones) increased 62.6% during the first eight months of this year compared to the same period last year. ” ( Mollman , 2023) Furthermore, the NAFTA trade agreement guaranteeing free trade between the US and Mexico is a way around the tariffs once Chinese EV companies begin streamlining manufacturing in Mexico. No matter the outcome of this race for EV dominance, it is certainly an exciting time for the EV industry! Works cited: https://www.autoweek.com/news/a45223101/chinese-evs-coming-to-us-through-mexico/ https://fortune.com/2023/12/30/chinese-electric-vehicles-makers-mexico-plans-spark-fears-in-us/ Interviewee list: Gerry Ng , a prospective car buyer, interviewed in-person Chinese EV worker, prefers to remain anonymous, contacted through WeChat
