Latest Survey In The US, Consumers Like Cheap Chinese And Xiaomi Electric Cars Become New Threats

Just 32 days after the launch of Xiaomi SU7, the Xiaomi Factory reached a production milestone of 10,000 units. (Doc. X/@leijun)

JAKARTA - The 2024 China Auto Show (Beijing Auto Show) automotive exhibition which is currently underway seems to open the eyes of the world as to how advanced the Chinese electric car industry is. Recognition also came from various parties if local Chinese car manufacturers had many cheap and high-quality electric cars.

Industry observers in the US say it's just a matter of time before the companies target the United States.

In a recent survey, reported by InsideEVs on April 30, consulting firm AlixPartners conducted a survey of Americans whether they would buy Chinese electric vehicles if they were 20 percent cheaper than non-Chinese cars but the specifications were comparable. Of the 73 percent of respondents answered yes.

Arun Kumar, top brass at AlixPartners called the well-established Chinese brand a technology advantage, and competitive costs all add to the problems that overshadow Ford and Volkswagen. And remember, China also dominates battery manufacturing.

"It just makes them more resilient competitors in the future, in all markets," he said.

In addition, younger buyers also have better awareness about China's car brand advantages, according to the study.

Chinese electric vehicle manufacturers, on the other hand, have been more advanced than American and European competitors for five to 10 years. Much of it is thanks to the aggressive investment in the EV industry from the Chinese government.

"That's what makes it scary" for car manufacturers, he said. "The game is played differently."

Furthermore, he said that with everything Xiaomi SU7 has, for example, from specifications to prices, it will sell for sale in Europe or America.

It is known that Xiaomi SU7, the technology giant's first car, was offered under US$30,000 (Rp487 million) in China and advertised its operating system such as a smartphone.

While in terms of batteries, Nio, a startup, demonstrates next-generation EV battery chemicals that can push the car 650 miles or more than 1000 km.

Several Chinese brands have started selling cars across Europe. But not in the US yet.

"We in the US do have some Chinese-made vehicles, such as Polestar 2 and Volvo EX30, but they are not from local brands," he added.

There is reason to believe that China's superiority over other countries in the world will continue.

"And it comes to the country's very hot EV demand (US), if you have attractive and cheaper products, economically it is difficult to get rid of (the US ban) of the vehicle," Kumar concluded.