Summary
– Younger U.S. drivers more open to driving vehicles from Chinese brands than older drivers
– Data privacy concerns high regardless of age, 44% very concerned and 34% somewhat concerned
– 76% of respondents under 40 interested in purchasing a vehicle from a Chinese brand
– Biden administration hiked tariffs to keep Chinese EVs out, 100% tariff on cars built in China
– BYD made global launch of plug-in hybrid pickup in Mexico to potentially avoid new tariffs and qualify for federal EV tax credit
Article
A recent survey conducted by AutoPacific revealed that younger drivers in the United States are more open to driving vehicles from Chinese brands compared to their older counterparts. While no vehicles from Chinese brands are currently being sold in the U.S., nearly half of the survey respondents expressed familiarity with Chinese vehicle brands, and about 35% said they could consider purchasing a vehicle from a Chinese brand. However, concerns about how Chinese brands handle data privacy were high among respondents of all ages.
The survey indicated that respondents under the age of 40 were significantly more likely to consider purchasing a vehicle from a Chinese brand, with 76% expressing interest. This interest declined steadily with age, as only about 26% of respondents aged 60 and older were willing to consider buying a car from a Chinese brand. Despite the higher interest among younger drivers, data privacy remained a major concern, with 73% of respondents under the age of 40 expressing concerns about privacy.
AutoPacific president Ed Kim stated that privacy concerns about Chinese-brand vehicles may eventually subside, as many everyday devices such as smartphones, laptops, and smart home devices are already manufactured in China. However, data privacy remains a concern with cars sold in the U.S., as evidenced by a recent Bolt EV data scandal. The survey findings suggest that there is a need for greater transparency and accountability regarding data privacy in the automotive industry.
The Biden administration recently imposed tariffs on Chinese electric vehicles in an effort to protect American manufacturing and union jobs. These tariffs, which include a 100% tariff on cars built in China, are intended to tighten the EV supply chain and qualify for the federal EV tax credit of up to $7,500. While these measures aim to boost American manufacturing, they may hinder efforts to reduce emissions by limiting the availability of affordable EVs in the U.S.
Chinese automakers have been expanding their presence in global markets, with China now producing enough batteries to support global EV production. Chinese automakers offer more affordable EVs in markets where they currently operate, addressing a gap in the U.S. market. Mexico has emerged as a potential workaround for Chinese automakers to bypass the tariffs, as EVs assembled in Mexico qualify for the federal EV tax credit. Additionally, North American assembly may be of interest to consumers, as survey respondents indicated a preference for cars built in Mexico or the U.S.
Overall, the survey results suggest that younger drivers in the U.S. are more open to the idea of driving vehicles from Chinese brands, despite concerns about data privacy. The Biden administration’s tariffs on Chinese EVs aim to support American manufacturing and union jobs, but may hinder efforts to reduce emissions and limit access to affordable EVs. Chinese automakers have the potential to win over consumers and government officials by building locally in North America, similar to the success of Japanese, Korean, and German automakers in the past.
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