Chinese EV makers aim to sell cars in America

As China’s electric vehicle manufacturers aim for global domination, experts agree the next step is moving into the American market.

Chinese EV makers have expanded into Europe recently and market analysts expect the cars will be in the US in the near future.

“I’d imagine it’s only a matter of time before we see more Chinese vehicles being sold in North America,” Morningstar analyst Seth Goldstein told Capital.com in an interview.

“Given that EVs are a new powertrain, this (type of vehicle) is an opportunity for Chinese automakers to establish brands in new geographies where, for years, with the internal-combustion engine (ICE), Chinese automakers tended to only sell vehicles in China.”

“Now that the playing field is more level for everyone, this is an opportunity for (Chinese EV makers) to start selling cars in North America,” said Goldstein.

EV engines level playing field

The playing field is more level, he added, because all automakers are developing new powertrain technologies, versus using existing ICE powertrain engineering expertise.

The US had a huge head-start on China when it came to conventional auto production. China did not start producing vehicles for consumers until the mid-1950s while the US began doing so in the early 1900s.

“In addition to producing ICEs later, many Chinese automakers either made vehicles that were more specific to the Chinese market, such as smaller passenger cars, or entered into joint-ventures with existing automakers, which limited their ability to sell those vehicles outside of China,” said Goldstein.