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Chinese automakers may be locked out of the U.S., but they’re focused on a different market: the rest of the world.
Analysts say the tariffs on Chinese electric vehicles that Washington
is rolling out won’t change the carmakers’ global ambitions but will
trigger changes in strategy. The WSJ’s Yoko Kubota and Sha Hua report
companies led by market leader BYD will emphasize emerging markets and localize production where possible
as they look to work with governments that are more open to Chinese
EVs. Some companies also may focus on supplying EV technology, an
approach that could lessen the political backlash and offer an indirect
path to U.S. business. Within China,
more than 100 EV brands are battling for market share, driving down
prices and profitability. China’s capacity is running above domestic
demand, and makers are looking abroad, where they believe margins will
be higher and competition softer.
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