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Themis Qi

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.
In an April report, UBS analysts also said Chinese EVs would enter the US market in the mid-to-long term, even though China’s carmakers faced steep tariffs.
After a January agreement between Ottawa and Beijing to import 49,000 Chinese-made EVs per year, 12,515 vehicles had been shipped from China to Canada as of August 7, data from Global Affairs Canada showed.
In Mexico, China has become the second-largest car supplier, with a 22 per cent market share in the first half of the year, according to local media reports.
As a result of China’s prowess in the automotive supply chain and related technologies, the cost of making a BYD EV was 25 per cent lower than its Western rivals, a 2023 report by UBS showed.
These cost advantages have led to a wide price gap between the Chinese and Western markets.
The average price of a new EV in China in the first half of the year was 247,000 yuan (US$36,605), according to Cui Shudong, secretary general of China Passenger Car Association. An EV in the US cost US$55,300 on average as of February, which was also higher than that of a new petrol car at US$48,800, data from Kelley Blue Book showed.
For Chinese carmakers facing weakening demand and squeezed profits at home, the US – as the world’s second-largest car market – cannot be ignored.
In May, Chinese brand Geely said it would not rule out the possibility of entering the US market, adding that a decision would be made within three years. Despite concerns from local lawmakers, a plant co-built by Ford and CATL in Michigan was on track to begin delivering EV batteries in 2026.
But in the short term, Chinese cars are likely to steer clear of the American market.
The Chinese-made cars of Chevrolet, a flagship brand owned by General Motors, would “proactively explore overseas markets outside the US,” said the China unit of the US car manufacturer in a statement on Thursday. It came just one day after GM and China’s state-owned SAIC Motor officially extended their partnership by 20 years to 2047.
BYD’s international operations head Stella Li said in July that the EV giant could still achieve its goal of No 1 in the global market without selling cars in the US.


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The pressure is likely to mount after consumers in the two neighbouring markets of Mexico and Canada adopt Chinese EVs


The pressure is likely to mount after consumers in the two neighbouring markets of Mexico and Canada adopt Chinese EVs.


Demand for affordable EVs will force open US market to Chinese models eventually: analysts

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The pressure is likely to mount after consumers in the two neighbouring markets of Mexico and Canada adopt Chinese EVs

The pressure is likely to mount after consumers in the two neighbouring markets of Mexico and Canada adopt Chinese EVs