China manufacturers are popular for their cheap consumer electronics and now major electric carmakers from China are planning to increase and expand their sales across the world, particularly in the US market. BYD – Build Your Dream – Company is the largest electric car company in China, and they have analyzed to set up the distribution network in the US.
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Market experts revealed, Chinese EV carmakers have to face two problems, which is convincing people to switch from fossil fuel-powered vehicles to electrically powered vehicles, and another is to buy Chinese products. But, the lower cost of electric cars from Chinese carmakers will be good for competition and, Americans may get convinced to buy Chinese brands.
It is not far when Chinese electric carmakers will be moving to the US markets and will be giving tough competition to Tesla and other US electric carmakers. As per experts in the field, It is expected that Chinese electric carmakers have to bear a huge upfront cost to enter the US market.
In the past, Reuters shared the news about BYD company that, they are researching different electric vehicle markets, including US Market, and planning to expand by establishing a distribution network in the US. The reason to expand worldwide is to become the largest manufacturer in China.
As the BYD company design and develop most of its EV components domestically in China, hence they consider them in a better position than Tesla in the electric vehicle market.
However, the US is taking a cautious approach to electric vehicle and their policies, considering the tensions between the countries.
BYD – Build You Dream – Company Position in China Market
Certainly, BYD is in a better position in the China EV market, compared to other competitors. Also, the China EV market is already one of the major markets in the world, but now, BYD plans to branch out its offering in other markets as well. It is evident from the recent price cut of the electric car by Tesla and XPeng, that electric carmakers are competing hard to push and increase their EV sales by making electric cars more affordable.
Gap in US EV Market
According to CleanTechnica, electric vehicle sales increased by 65 percent in the US during the year 2022. Tesla and Ford’s electric cars are occupied top spots in domestic car sales, which is just 5.7 percent of the total. Hence, electric car offerings are still short for consumers.
Chinese electric carmakers could fill the gap in electric car offerings in the US market, which can be observed by their plans of increasing production at a fast pace. Including Chinese carmakers, other carmakers like Toyota and Honda are also on the path of providing better and more affordable offerings in EV markets.
Final Words
Electric car adoption is still a major challenge for electric vehicle carmakers. Many companies including Tesla and Chinese electric carmakers are trying to solve the problem by offering affordable electric cars for consumers. Entering the US market, Chinese electric carmakers need to solve one more additional challenge in making US consumers use Chinese products. Also, Biden’s government is taking a cautious approach to foreign manufacturers.
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