Chinese automakers have struck fear among global car companies.
Tesla was recently overtaken by China’s BYD (backed by Warren Buffett’s Berkshire Hathaway) in global electric car sales.
Some of the better electric cars made in China are attracting interest from wealthy car buyers in other countries, including smaller countries where the cars are not yet officially sold. This opens the door for individual traders, who can move themselves more nimbly than car manufacturers to exploit loopholes.
as Rest of the world ReportThese traders register vehicles in China and then send them to eager fans overseas, including in Kazakhstan and Saudi Arabia. This makes the vehicles technically used, in which case authorization from the car manufacturer is not required.
In this way, overseas buyers purchased fashionable Chinese electric vehicles often seen as status symbols, including BYD’s high-end models, ideal car, and Zeekr (Geely’s high-end electric vehicle brand). Of course, they pay a premium for this, and since the automakers themselves haven’t established a local presence yet, they may encounter repair difficulties.
“Chinese cars are becoming more and more popular,” said a car exporter in northern China’s Hebei province. Rest of the world. “Big screens, interactive features, hidden door handles, voice controls, massage chairs — all of these are very attractive.”
To be sure, this gray market caters to demand for more attractive Chinese models rather than ultra-affordable models. Of course, as Chinese automakers build operations in China, the role of the gray market will gradually diminish over time. More and more countries.
But the desire and awareness of such models among buyers in far-flung countries is a testament to Chinese automakers’ ability to compete at both the high and low end of the market.
last summer, Ford Executive Chairman Bill Ford has warned that U.S. automakers are “not ready” to compete with Chinese rivals in electric vehicles. “They are growing very fast and have been developed on a large scale and are now being exported.” Tell CNN: “They’re not here, but we think they’re going to be here at some point and we need to be ready.”
This story was originally published on wealth network