Chinese EV makers disrupt global market but face U.S. tariffs | Driving Into the Future

You may think the world’s biggest electric automaker is Tesla. But it’s actually a company in China called BYD.

Ford CEO Jim Farley recently called China’s EV industry “the 700-pound gorilla globally,” warning that Chinese automakers could put every American carmaker out of business.

They go by names like BYD, Li and Geely – Chinese automakers disrupting not just the EV market worldwide, but all auto sales.

“China is the world’s largest EV market period,” said Justin Fisher of CarEdge.com.

Fisher said more than 50% of all vehicles sold in China are electric, and Chinese automakers are making massive inroads in Latin America and Europe.

“It’s actually an oversupply in China that led to them sending entire cargo ships to Latin America, landing in Mexico, Brazil and elsewhere,” Fisher said. “They built too many cars in China.”

But you won’t see these Chinese EVs on U.S. roads, due to tariffs of more than 100% designed to protect American automakers.

China’s EV global expansion is fueled by low labor costs and government subsidies. One think tank estimated China spent $230 billion on its EV industry from 2009 to 2023. BYD sells its compact Dolphin model in Europe for about $23,000 – roughly half the price of a Tesla Model 3.

“They come with essentially the infotainment and the driver assistance of a luxury car at half the price point,” Fisher said.

With those tariffs, major Chinese EV brands aren’t expected in the U.S. anytime soon.