China can flood the global car market with cheap electric cars
Western manufacturers of electric cars seek to seize a share of the world's largest market for these cars – Chinese. However, in recent years, they have faced a serious problem: hundreds of companies producing electric cars have sprung up in the PRC.
Government support for the Chinese electric car industry suggests that the PRC authorities want the prosperity of this sector of national auto production. At the same time, Western analysts warn that an excess of Chinese electric cars can not only saturate their own car market, but also lead to the emergence of a mass of cheap electric vehicles from China on the world market.
Chinese automakers believe that they have a second a chance to enter the international market with their products. Recall that a few decades ago, the country failed, trying to establish the production of traditional cars for export.
In the PRC, everything has changed
Now everything is different. The production of electric vehicles, from the point of view of engineering infrastructure, is easier and simpler than the production of cars with internal combustion engines. In addition, the government continues to stimulate sales of electric cars within the country, with the goal of increasing these sales to 25% of the total number of cars purchased in China by 2025.
US Center for Strategic and International Studies (CSIS) expects that the production of electric cars in the PRC will soon exceed national demand. As a result, Chinese electric cars will be exported, and at very low prices.
Initially, exports can be sent to developing and neighboring countries. But ultimately, these deliveries can reach developed countries, Scott Kennedy, one of the authors of the CSIS report, notes.
“There is no definite dynamics in the global automotive market, like in the steel or solar panels, for example. But the emergence of a large mass of cheap Chinese electric cars will definitely create problems for their competitors abroad. The entire global automotive industry will be under pressure, ”said Scott. : ///
Record China can flood the world car market with cheap electric cars first appeared TEKNOBLOG .
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