Way back when, auto companies were freaked out about Japanese imports. There were even contests where people took turns smashing a Japanese car with sledgehammers.
The foreign car companies just moved their operations to the US, Canada, and Mexico. It was actually cheaper for them to assemble in Mexico then ship the cars across the border than sending built cars on ships. They didn’t care. They still made money.
Chinese auto companies will probably take the same route. BYD will likely build local factories and battery plants. They’ll find under-served areas where the wages are low. The cars will cost a bit more than the Chinese versions, but still be cheaper than US, Japanese, and European brands. They’ll still make money.
Way back when, auto companies were freaked out about Japanese imports. There were even contests where people took turns smashing a Japanese car with sledgehammers.
The foreign car companies just moved their operations to the US, Canada, and Mexico. It was actually cheaper for them to assemble in Mexico then ship the cars across the border than sending built cars on ships. They didn’t care. They still made money.
Chinese auto companies will probably take the same route. BYD will likely build local factories and battery plants. They’ll find under-served areas where the wages are low. The cars will cost a bit more than the Chinese versions, but still be cheaper than US, Japanese, and European brands. They’ll still make money.
Do you know why China did not do this 10 years ago? Hint, it’s related to my comment.