China Will Dominate US Electric Car Sales
The overlap of the New York Auto Show and the Shanghai Auto Show provides an interesting backdrop for the looming battle for EV sales going forward.
The past two years have seen China surpass the US as the number one market for major appliances, and automobiles. Granted on a dollar value the US remains on top but most analysts believe that is only a matter of time before even that status falls.
In the US there is serious resistance to even the 7.5k tax credit. Meanwhile no one flinches in China as the government lays out 20k-30k per car to encourage electrics.
GMs and Fords Partners are making noises about introducing electrics under their own brand name.
And now come reports from Deloitte
http://uk.ibtimes.com/articles/128873/2 ... ricing.htm
and Gartner both stating essentially the same thing. The Chinese consumer is eager to buy electric, Americans? Ahhh not so much. The Chinese are willing to pay more, and the don’t need higher gas prices to motivate them.
Ford and GM will try to garner electric sales in China, and their growth there has been impressive. But this is a market China wants badly, and if history is any lesson they will tilt the playing field to achieve their ends. They probably will not have to tariff Ford and GM to death. They will just let them do the heavy lifting to perfect the technology and then steal it.
http://www.nytimes.com/2010/12/15/busin ... awind.html
Once they have dominated their home market spreading that joy to the rest of the world will be pretty straight foward.