Does China Builds Better EVs?
As EV sales growth lags in the US and Europe, China is the major EV success story. Is it because the government supports EV sales? If so, that support is not consistent based on levels and frequency of EV price credits. Is it because air pollution is such a serious problem? Is there a better charging station infrastructure?
China EVs —National Security Threat?
America’s Worst EV City —Milwaukee
China’s EV statistics are extraordinary compared to other major markets. Last year, 25% of all new cars sold in China were EVs (not including hybrids). Based on a different measure, total EV sales were 8 million for 2023 (5.2 million BEVs and 2.8 million PHEVs) US EV sales were 1.2 million (EVs only).
China’s EV market is crowded. Three hundred companies make EVs in the country. However, one dominates the market. BYD is now the largest car company in the world, ahead of Tesla, and has the largest EV market share in China.
Are China EVs Coming To The US?
Car companies in the US, Japan, and Europe have begun to worry that Chinese EVs will take huge market share in their home markets.
The FT thinks one of its reporters has an answer to why China’s EVs do so well. “Mathias Miedreich, chief executive of Umicore (an electric battery company), said sales of Chinese electric cars were surging in contrast to the US due to better performance and affordability.”
Writers in Wired made a related observation: Auto executives in Western nations thought it would take years for EVs to have a large market share. Most targeted 2030, as when they needed most of their fleets as EVs. Recently, EV sales have slowed, and these companies have pushed these targets further into the future. But should they? Is the problem that people don’t want EVs or don’t want EVs made by Western legacy car companies?
Will The US Government Block BYD?
The test of what people want is approaching quickly. China EV giant BYD wants to push into the EU market, probably by making cars in Thailand and to the US through factories in Mexico. ‘The primary delay to this reckoning is public policy. Morning Brew observes, “The short answer is trade barriers: The US has a 25% tariff on Chinese EV imports (in addition to the 2.5% duty on all imported cars).”
It is easy to say that China cannot compete with US car companies in the US. Their inexpensive, eclectic cars are too poorly made or don’t have enough features. This is exactly the case the American car companies made as the Japanese manufacturers invaded the US in the 1970s and 1980s.
