American automakers increasingly view Chinese electric cars as an existential threat, despite the fact that Chinese-branded cars aren’t even for sale in the U.S. yet. Detroit has seen this before with Japanese and Korean rivals, which filled a need for affordable, efficient cars – and consumers eventually embraced them.
Chinese cars have long been poorly made. But thanks largely to government support — plus access to cheaper batteries and labor – the country now makes attractive, affordable models, like the sub-$11,000 Seagull EV from BYD, the world’s top seller of EVs and plug-in hybrids.
Chinese cars are already being exported to Mexico, and BYD, Chery and at least one other Chinese carmaker are scouting plants there, the Financial Times reported – meaning Mexico could become a backdoor for selling Chinese cars in the U.S.