Demand for affordable EVs will force open US market to Chinese models eventually: analysts
Consumer demand for affordable electric vehicles is likely to force open the US market to Chinese electric vehicle (EV) brands within the next few years, even though they currently face trade barriers, according to analysts. US carmakers are expecting the same, with Ford CEO Jim Farley recently predicting the entry of Chinese EVs as early as five years. Farley, one of the most outspoken voices in…
Analysts predict that consumer demand for affordable electric vehicles (EVs) will eventually force open the US market to Chinese EV brands, despite current trade barriers. Ford CEO Jim Farley has suggested that Chinese EVs could enter the US within five to 10 years, and Ford is preparing for this possibility. However, it might not be easy for the US to completely block Chinese EVs from entering the market due to consumer demand for affordable smart EVs.
UBS analysts also forecast Chinese EVs entering the US market in the mid-to-long term, even with steep tariffs. China's automotive prowess and lower costs have resulted in a price gap between Chinese and Western EV markets, with the average price of a new EV in China being 247,000 yuan (US$36,605) in the first half of the year, while the average price of a new EV in the US was US$55,300 in February.
Chinese carmakers, faced with weakening demand and squeezed profits, cannot ignore the US market as the world's second-largest car market. Chinese automakers like Geely and BYD have expressed interest in entering the US market within the next three to five years.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
