US may not be able to compete with China in the electric car game. Here's why

China recently overtook Japan to become the world's largest car exporter. A vibrant EV market is furthering the country's dominance in the automotive
File photo of a car manufacturing facility in China.
File photo of a car manufacturing facility in China.

China is a mammoth market for vehicles as well as those that are entirely powered by batteries. The country has a sizeable lead over second-placed US in terms of both manufacturing as well as sales of electric vehicles (EVs). And it is not likely to give up this lead any time soon.

Ford Chairman Bill Ford has seen the evolution of the global and American automotive market from extremely close quarters. And even he knows that the US has an uphill task if it wants to challenge the sheer dominance of China in terms of EVs.

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In an interview with CNN, Ford explained that China has rapidly expanded its EV base and predicted that Chinese manufacturers will begin to challenge American auto companies in the US as well. "They developed very quickly, and they developed them in large scale. And now they're exporting them. They're not here but they'll come here we think, at some point, we need to be ready, and we're getting ready," he was quoted as saying.

Also Read : Ford to build multi-crore electric vehicle battery manufacturing facility in US

A number of Chinese car manufacturers are looking to ‘invade’ the North American market and leading the fray is BYD. BYD is challenging the might of Tesla, the world's largest EV company, and has already started looking at markets in Europe. Even Tesla, a company that feeds select European markets with units manufactured at its Shanghai facility, sees merit in taking units from here to North America.

China recently became the world's largest car exporter, overtaking Japan. The country exported 1.07 million units in the first three months of this year. According to Fortune, exports of cars from the country have tripled since 2020 and was 2.5 million units in 2022 which helped it overtake Germany in terms of total units shipped out.

But while exports from China continue to grow, the pace of rise in local demand for EVs has begun slowing down. This has prompted authorities to launch a six-month campaign of incentives and benefits to bolster sales. There is also a push to make EVs more popular in rural parts of the country.

First Published Date: 19 Jun 2023, 10:29 AM IST

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