Chinese automakers pose a growing threat to their American counterparts — even without selling directly to consumers in the U.S. market.
Sales of China-made vehicles are rising at notable rates in Asia, Europe and other countries outside those continents. China recently reported exports of more than 5 million vehicles in 2023, topping Japan to become the top country for car exports in the world.
That volume from well-established, government-owned companies like SAIC and Dongfeng, as well as newer players like BYD, Nio and others, has catapulted China from the sixth ranking to the top seed since 2020. It comes amid declining U.S. vehicle exports as companies such as General Motors have cut international operations. U.S. auto exports in 2022, the most recent data available, were down 25% from their peak in 2016, according to the U.S. Bureau of Economic Analysis.
America — fourth globally in vehicle exports prior to 2020 — ranked sixth in the world last year, falling behind No. 5 Mexico, No. 4 South Korea and No. 3 Germany, according to global consulting firm AlixPartners.
Yes Chinese goods do tend to have quality issues, but not always. Harbor Freight tools last way more than once IME. Companies like DJI make great products, probably the best on the market.
If Chinese companies can export simple reliable cheap EVs to the US I think that’s a large market segment that isn’t being filled.
Feels a lot like the Japanese Compact car invasion after the Oil Embargo of the 70’s. They came in and wiped the floor with the lazy, large, more expensive gas guzzlers that the US automakers were cranking out. Changed the whole game…
We can agree to disagree about Harbor Freight.
However, I think you missed my point.