China is a huge market for cars and vehicles powered entirely by batteries. The country is well ahead of the second-ranked United States in terms of manufacturing and sales of electric vehicles (EVs). And it’s unlikely to relinquish that lead anytime soon.
Ford Motor Chairman Bill Ford takes a close look at the evolution of global and U.S. auto markets. Even he knows the U.S. faces a daunting task if it wants to challenge China’s absolute dominance in electric vehicles.
In an interview with CNN, Ford explained that China has rapidly expanded its electric vehicle base and predicted that Chinese manufacturers will also begin to challenge U.S. auto companies in the United States. “They’ve grown very fast, they’ve developed them on a massive scale. Now they’re exporting them. They’re not here, but they’re going to be here. We think at some point, we need to be ready, we’re ready, ’ he was quoted as saying.
Also read: Ford to build tens of millions of EV battery manufacturing plants in US
A number of Chinese automakers are looking to “invade” the North American market, with BYD leading the way. BYD is challenging Tesla, the world’s largest electric car company, and has begun eyeing the European market. Even Tesla, which supplies certain European markets with products made at its Shanghai factory, sees the benefit of bringing products from here to North America.
China recently overtook Japan to become the world’s largest car exporter. In the first three months of this year, China exported 1.07 million units. The country’s auto exports have tripled since 2020 to 2.5 million by 2022, helping it overtake Germany in total shipments, according to Fortune.
But while China’s exports continue to grow, the pace of growth in local demand for electric vehicles has begun to slow. This prompted authorities to launch a six-month incentive and benefits campaign to boost sales. There is also a push for EVs to become more popular in rural areas of the country.
First published date: Jun 19, 2023 at 10:29 AM CST