China EV Companies Plan To Seize Africa And South America
Chinese EV companies, led by BYD, cannot get a toehold in the US or most of Europe. The tariffs, meant to protect companies like Ford, are too high to make them affordable. US tariffs are 100%. However, these companies have effectively started to surround Japan, the US, and Europe by building significant sales worldwide, particularly in Africa and South America. The primary targets are South Africa, Brazil, Turkey, and Chile.
“Global market share for Chinese automakers outside their home country is expected to climb to 13% in 2030 from 3% today, according to AlixPartners,” Bloomberg reported. This puts mega car companies Ford, GM, VW, and Toyota back on their heels. They will end up essentially on islands, although large ones, that include modest parts of Asia, Europe, the EU, and the UK.
Legacy Car Company Trouble
The dark future for the big legacy manufacturers is that tariffs will eventually fall. Chinese EVs have advanced technology, good charging times, and sell for half or less than EVs made by Tesla and fossil fuel car makers. The day those tariffs fall, each of these will be in very deep trouble financially.
Today, it is assumed that US tariffs will last forever. Consumer demand will change over time. Chinese car companies will offer to build plants in Europe and the US, creating new jobs. This is an old game that companies like Toyota and BMW have played in the past.
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