18 hours ago
New Report Says American Consumers Are Ready To Embrace Chinese EVs
A new report by a group that advises U.S. auto dealer groups suggests American consumers are open to buying cheaper electric vehicles from Chinese automakers.
The semi-annual report from Dave Cantin Group says American consumers and dealers expect Chinese companies will made advances into the U.S. market – because such vehicles are more affordable.
The report, published in a partnership between DCG with Kaiser Associates, was posted publicly on Wednesday.
'Affordability is the dominant theme at the midpoint of 2025, and it has implications across nearly every other issue facing the automotive industry,' DCG President Brian Gordan said in a statement.
'Affordability is reshaping purchase decisions, driving interest in cheaper Chinese vehicles, and making any manufacturing to pass on tariff costs to consumers virtually impossible without the risk of losing market share.'
The administration of U.S. President Donald Trump is in the midst of a trade war with China. Already, there are tariffs that make it difficulty to import Chinese vehicles. Regardless, the Chinese auto industry is expanding globally.
The Trump administration has unleased tariffs across various countries. Tariffs are not a transfer of funds from one country from another. Instead, tariffs are levied against importers of goods. Those costs are often passed on to U.S. consumers.
Despite tariffs, the Chinese auto industry represents a competitive threat to U.S. automakers.
In June, Terry J. Woychowski, president, automotive of Caresoft Global, a Michigan-based engineering services company, said Chinese auto advances presented an 'existential threat' to established automakers.
Chinese automakers can develop new models in 14 to 18 months compared with 36 to 48 months for traditional automakers, Woychowski said in June. Such traditional auto companies are 'three to five years behind from a technology standpoint,' he said. China automakers can produce EVs for about $30,000 each.
The DCG report says 40% of American consumers 'say they would consider a Chinese-made vehicle and 75% of dealers expect Chinese brands within in the market with a year.'
Traditional automakers are taking notice of the auto threat from China.
Earlier this month, Ford Motor Co. said it plans to invest around $5 billion to reset its EV program with more affordable vehicles produced more efficiently, at lower cost,
The DCG report also makes the following points:
--Consumers 'are staying in their favorite segments but within budget – opting for smaller versions of trucks, SUVs and crossovers or lower trims to stay within budget,' according to the report.
--Automakers absorbed financial hits from tariffs during this year's second quarter. Meanwhile, auto dealers 'whose profits are less dependent on new-vehicle markets, are leveraging strong parts and service revenue, finance and insurance products' plus used-vehicle sales to increase profit margins.
DCG said the report 'draws on proprietary consumer and dealer survey data' and other information.
