Demand for affordable EVs will force open US market to Chinese models eventually: analysts
The pressure is likely to mount after consumers in the two neighbouring markets of Mexico and Canada adopt Chinese EVs
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 the US automotive industry on the competitiveness of Chinese EVs, told Ford’s staff two weeks ago that peers from China would likely arrive in “five to 10 years”, and that the company was preparing for this, Reuters reported on July 30.
Even if Farley’s remarks were aimed at pushing Ford to double down on EV research and development, it would not be easy for the US to completely block Chinese EVs from the market in future, said Yale Zhang, managing director at the consultancy Automotive Foresight in Shanghai.
“[US carmakers] would face complaints from consumers who are supposed to enjoy affordable smart EVs [made by Chinese companies],” Zhang said.
The pressure would likely mount after consumers in the two neighbouring markets of Mexico and Canada adopted EVs that offered good performance and value for money, Zhang added.