Chinese car companies are very interested in the US market. They may be able to bring cheap electric vehicles (EVs) to American dealerships in the next 5 to 10 years, even though tariffs are high. This move could lower car prices for US consumers by making it easier for other companies to compete, but it could also be hard on American manufacturers and their workers.
High tariffs between the US and China have stopped direct imports. This has led Chinese companies like Geely and BYD to think about building factories in the US. Industry experts think that Geely, which owns Volvo and Zeekr, could announce plans to enter the US market in 24 to 36 months, thanks to the expansion of its South Carolina plant. Geely has already sent Zeekr cars to Waymo, Alphabet’s self-driving unit, making it the leader among Chinese companies.
Last year, China made one-third of all cars in the world and sent more than 8 million of them abroad, a 30% increase from 2024. This made China the top exporter, ahead of Japan. The “ultimate triumph” for these companies is the US market, where wealthier buyers prefer bigger cars.
The Trump administration is in favor of foreign investment in US manufacturing, which could make it easier for companies to do business here. More Chinese electric vehicles could lower prices in the same way that prices fell in Europe after they entered the market. This would give US consumers more choices at a time when car prices are at an all-time high. But it could hurt the profits of US car companies and almost 1 million jobs. Analysts Like Lei Xing, who says “ambition is there,” this means that a competitive shake-up is coming soon.
