From CNBC:

Chinese automakers are becoming a growing threat to their American counterparts without directly selling vehicles in the U.S. China recently topped Japan to become the leading car exporter in the world in 2023, with companies such as SAIC, Dongfeng, BYD, and Nio leading the charge. U.S. car exports are declining as a result.

Automotive experts point to BYD Co. as a prime example of the success of Chinese automakers. The Beijing-backed company topped Tesla to become the world’s largest seller of EVs. The Chinese market has allowed BYD to expand and set the standard for vehicle production and pricing with its low-priced vehicles, particularly after receiving an estimated $4.3 billion in state support from 2015 to 2020.

Chinese automakers are extending beyond their home country and are beginning to break into markets in Europe, Mexico, and other parts of the world. The EU has acknowledged that Chinese EVs are undercutting local models by about 20% in the European market. Chinese vehicles with internal combustion engines have gone from 0% to 20% of Mexico’s light-duty vehicle sales over the past six years, with the possibility of an increased presence in the near future.

While Chinese automakers have yet to successfully sell vehicles under their own brands in the U.S., Chinese companies have been successful in expanding into the U.S. market indirectly. Some established car brands owned by Chinese companies, such as Lotus, Volvo, and Karma, have established a presence in the U.S. market. Major American automakers are already, or plan to, manufacture some vehicles in China to be imported and sold in the U.S. GM imports its Buick Envision from China to the U.S., and Ford plans to import its forthcoming Lincoln Nautilus crossover from China.



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