China’s Rising EV Market
U.S. Government’s Efforts to Block Imports
U.S. Consumers Have a Different Opinion
The capabilities of China’s electric vehicle industry have reached a level that is difficult to ignore. Although there are still many areas that need improvement, it is evaluated that it has reached a level where it can push its cost-effectiveness in the mass electric vehicle market. Some manufacturers even swept the top charts in the Euro NCAP (Euro New Car Assessment Programme) by resolving safety issues, which were the fatal shortcomings of Chinese vehicles.
Accordingly, the U.S. government’s checks have recently become more prominent. The U.S. government’s attitude is so strong that it is considering raising the 27.5% tariff currently imposed on electric vehicles imported from China to 125%. However, American consumers are attracting attention by showing surprisingly favorable public opinion toward Chinese electric vehicles.
76% of Under 40s are Positive
The main reason is the Affordable Price
AutoPacific Group, an American automobile consulting firm, released survey results regarding Chinese electric vehicles (EVs) awareness among U.S. consumers. The survey, which involved 800 participants aged 18 to 80, yielded intriguing findings. Notably, among respondents under 40, 76% were considering purchasing a Chinese-made electric vehicle.
The main reason is the price. According to an analysis by automobile service company Cox Automotive, the average price of electric vehicles currently sold in the U.S. is about $55,000. Even with tax benefits, it is still burdensome. Edmunds, an automobile information company, found that 47% of the potential demand for electric vehicles wanted an electric vehicle priced below $40,000.
However, more conservative attitudes are evident among respondents over 60, with only 26% considering the purchase of a Chinese-made electric vehicle. Yet, there is potential for changing opinions. Notably, 16% of respondents indicated they would buy an electric vehicle if it were a Chinese brand produced in the U.S.
Those who responded positively also expressed a key concern: security. Seven percent of respondents said they were worried about the security of their personal information with Chinese electric vehicles. Nevertheless, some experts predict that these concerns will diminish over time. This transition may follow a similar path because many electronic products, such as smartphones, tablets, and laptops, are already manufactured in China and widely used without significant resistance.
Brand Awareness Rapidly Rising
Over Half Know BYD
Meanwhile, independent of their purchase intentions, American consumers’ awareness of Chinese electric vehicle brands is rapidly increasing. An AlixPartners survey found that 58% of consumers recognize Chinese electric vehicle brands like Nio, Xpeng, and BYD. Many consumers are also open to considering these brands for their next vehicle purchase.
The U.S. government announced increasing tariffs on Chinese electric vehicles and blocking imports via third countries. The Chinese electric vehicle brand’s plan to produce electric vehicles in Mexico and other Central and South American countries and sell them in the U.S. has become useless. In response, there is a controversy over unfair trade in China.
Most Commented