Is China ready to take over the US EV market?
China has consistently been searching for ways to capture the US by hook or crook, but this time it seems as if China would be successful in conquering the US EV market. The market for electric vehicles (EVs) is expanding rapidly in China.
Currently, there are around 400 "new energy" models available in showrooms all over the nation, with About 110 EVs and plug-in hybrids scheduled to be released in 2024. Many of these will be on display at the Beijing auto show and this number is forecasted to increase dramatically, more than half of all EV sales in China this year have come from the top 10 models, in the first place sold by the companies of BYD and Tesla.
Through a recent report it has been known that with the assistance of substantial subsidies, tax breaks, procurement contracts, and a few other governmental incentives that would support both the production and demand of EVs, the Chinese government has been quite invested in the evolution of the EV industry. Through this help, local EV brands have been able to flourish and adapt new technology to better serve Chinese consumers. China has become the world's largest market for electric vehicles (EVs) for eight straight years, with the number of EVs sold there annually rising from 1.3 million to 6.8 million in just two years, illustrating the rapid development of the industry.
Chinese electric vehicle manufacturers are aiming to take over the global market in addition to controlling the local one. China's top EV manufacturer, BYD, has reduced domestic pricing on three popular models by more than 9% this year, increasing the competitiveness of its cars on the international market. By the introduction of the new SU7, an EV that looks like a Porsche, Xiaomi, a recent newcomer into the EV business, went viral online on socials and plans to sell 100,000 units this year. Additionally, one of the three major state-owned car companies in China, Dongfeng, is putting forward their new eπ-007 (e-Pi-007) EV sedan, priced far less than a Tesla Model 3.
The U.S. car sector faces a serious threat from China's introduction of affordable electric vehicles. A tiny, cost-effective electric car called the Seagull, made by BYD, is making waves among US American automakers and politicians trembling. The automobile, which is priced in China for about $12,000 and has a lower-end variant for under $10,000, has excellent performance and construction. Chinese electric vehicles (EVs) are seen as a severe danger by the Biden administration and American automakers. The administration is anticipated to impose 100% tariffs on Chinese imports of EVs, citing probable job losses and national security concerns.
Overall, it can be noted that China's electric vehicle (EV) industry is a global powerhouse because of government backing, rivalry, and innovation. Chinese companies are aiming to take over the rest of the globe in addition to controlling the home market. The US government has responded by limiting China's role in electric car production, seeing that the rise of affordable electric vehicles from China is a danger to the US auto sector. China is positioned to have a significant influence on the direction of the global EV industry as it continues to develop.
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