Chinese EVs are dumping because China's economy is collapsing, forcing them to dump prices because there's not enough Chinese demand.
China is now exporting all of their excess inventory to Europe and beginning to make plans to export all this inventory to the USA. And USA is rejecting it.
China has overbuilt their EV market, and continues to over-invest and builld too many EVs. USA is already pissed off at this turn of events, and European politics are beginning to grow more protective as they are also seeing this ridiculous amount of inventories come over to their countries.
China bet too much on exports and has begun to piss off everyone else.
China's economy isn't collapsing, but it is contracting, and it is simply smart economic policy to stoke production vs unnecessary consumer demand domestically.
Global light vehicle market is almost 90 million units/pa. Ship every unit you can to every market that will accept those units (Tesla does this today, recalibrating exports as demand and incentives change; China built units are currently being offloaded in Canada due to demand sag). Of course you're going to have less sophisticated economies (who did not prioritize rapid investment in building EV manufacturing capacity up) upset you made prudent supply chain and manufacturing investments while they allowed their domestic concerns focus instead on profits (see: near term historical developed automaker share buyback volumes). If the US and Europe close their markets to Chinese EVs, Chinese EVs will consume any overseas TAM US and Europe automakers had a chance at (Mexico, Central and South America, parts of Asia and Africa, etc).
Global factory to the world being the factory to the world and the unsophisticated are all surprised pikachu. US economy is only ~18M units/pa, Europe ~10.5M units/pa, the rest of the world (~60M units/pa) is for the taking under strong trade protectionism regimes. This ignores the potential global TAM increase due to lower cost EVs inducing previously unaccounted for demand.
They're not dumping EVs. They're charging significantly more outside of China than in. Ar you just making shit up here? Sounds to me like you don't have a clue about this market. Compare BYD in China and Australia for example.
dragontamer|1 year ago
Chinese EVs are dumping because China's economy is collapsing, forcing them to dump prices because there's not enough Chinese demand.
China is now exporting all of their excess inventory to Europe and beginning to make plans to export all this inventory to the USA. And USA is rejecting it.
China has overbuilt their EV market, and continues to over-invest and builld too many EVs. USA is already pissed off at this turn of events, and European politics are beginning to grow more protective as they are also seeing this ridiculous amount of inventories come over to their countries.
China bet too much on exports and has begun to piss off everyone else.
toomuchtodo|1 year ago
Global light vehicle market is almost 90 million units/pa. Ship every unit you can to every market that will accept those units (Tesla does this today, recalibrating exports as demand and incentives change; China built units are currently being offloaded in Canada due to demand sag). Of course you're going to have less sophisticated economies (who did not prioritize rapid investment in building EV manufacturing capacity up) upset you made prudent supply chain and manufacturing investments while they allowed their domestic concerns focus instead on profits (see: near term historical developed automaker share buyback volumes). If the US and Europe close their markets to Chinese EVs, Chinese EVs will consume any overseas TAM US and Europe automakers had a chance at (Mexico, Central and South America, parts of Asia and Africa, etc).
Global factory to the world being the factory to the world and the unsophisticated are all surprised pikachu. US economy is only ~18M units/pa, Europe ~10.5M units/pa, the rest of the world (~60M units/pa) is for the taking under strong trade protectionism regimes. This ignores the potential global TAM increase due to lower cost EVs inducing previously unaccounted for demand.
ZeroGravitas|1 year ago
asadotzler|1 year ago