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Summary.
The rise of Chinese EV makers marks a crucial shift in the global auto industry, similar to the disruption caused by Japanese automakers in the 1970s. This phenomenon is forcing
Chinese EVs are 20 percent to 25 percent cheaper
In the news. Chinese companies are offering an increasingly wide range of EVs at different price points, while
- Chinese EV manufacturers are looking for opportunities to bypass trade barriers and sell their vehicles worldwide, including in
Europe and theU.S. Stellantis CEOCarlos Tavares estimates Chinese automakers' costs are 20 percent to 25 percent lower than European automakers.
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The
U.S. government and the auto industry recognize the need to become more competitive by offering cheaper electric cars and investing in the EV supply chain.Tesla has been saying for years that a cheaper car is on the way, but (for now) without success.
From less than 1 in 6 to 1 in 3 in three years
Zoom in. BYD has overtaken
- Chinese companies have invested significantly in the EV supply chain, offering advanced technologies at lower costs.
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Chinese automakers such as BYD, Chery and SAIC are exploring production opportunities in
Mexico as a springboard to the North American market.
Zoom out. The rise of Chinese EV makers illustrates the shift to a more globalized and competitive auto industry, which is challenging traditional players and forcing them to innovate.
- The battle for the EV market raises questions about globalization, trade policy and national security, especially with respect to EV data collection and management.
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Competition between
China and theU.S. in the EV market is likely to shape the development of the auto industry globally, with implications for technology, consumer choice and environmental policy.
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