Pretty much the only place in the world where Chinese cars haven’t made inroads is the US. Between tariffs and a ban on software systems controlled by Chinese companies, China has been effectively shut out of the American market.
China is the largest vehicle exporter in the world, with exports surging eightfold over the past 5 years. And China is knocking on the door in North America, with Mexico a huge importer of Chinese cars and Canada recently opening its markets to Chinese vehicles. With impressive technology – especially with EVs – and an expertise in manufacturing cars much more efficiently than other nations, China is a force to be reckoned with.
The American car market is the largest in the world by revenue, and Chinese companies wouldn’t mind finding a way in. And there are some rumblings within the industry that the Chinese can’t be kept out forever. Their products are way too good, and in America money always has a way of making conversations happen.
Chinese companies could decide to build factories in America, or partner with domestic manufacturers to jointly develop and produce vehicles in the US. And there is a huge opportunity in the American market, with affordability a significant hurdle to growing domestic auto sales. Detroit really doesn’t have an idea how to produce cars and trucks for the lower end of the market, but if they partnered with an up-and-coming Chinese company they could potentially come up with products for which there is a yawning need in the States.
Should be interesting to see it all evolve.