JAKARTA - The prospect of buying a new car is increasingly difficult for many Americans to reach. The average transaction price of a new car still remains in the range of 50,000 US dollars, while the line of cheap cars in Uncle Sam's country continues to shrink in the last decade.
By 2026, the situation is even predicted to be more extreme and it could be that no new cars are sold in the US with a base price below US$20,000. At the same time, consumer trends are moving in the opposite direction.
Buyers are flocking to large trucks and SUVs, paying higher down payments than ever before, then saddled with long-term loans of 72-84 months at high interest rates. That leaves the US auto market at a crossroads, and change must come.
President Donald Trump recently threw the idea of bringing Japanese kei cars to America. He even asked Transportation Secretary Sean Duffy to lift a number of restrictions that have made it difficult for small cars to be sold in the US.
However, now cars from China are another option that is starting to emerge. Since the mid-2000s, Chinese brands have considered exporting cheap sedans and affordable SUVs to American consumers.
The difference is, now the idea is starting to feel more serious and has momentum. One of China's largest automotive conglomerates, Geely, has expressed its intention to start selling vehicles in the US by the end of the decade, and Zeekr and Lynk & Co are considered suitable there.
"Currently, we are considering all global markets where we can expand," said Geely Global Communications Chief Ash Sutcliffe, quoted by Motor1, Wednesday, January 21.
"Currently we are very strong in China. We are growing rapidly in Southeast Asia. Europe is very stable. But the big question for us is when and how we will enter the US market," he continued.
He assessed that there was a niche that Geely could fill, namely premium and luxury vehicles at more reasonable prices. His party, assessed that Geely is in a good position to offer something very different to American consumers.
The initial scheme that Geely considered was to produce Chinese-made cars at the Volvo Ridgeville Plant, South Carolina. The car is specifically designed for the US market, even has the opportunity to be exported to other countries.
However, Geely admitted that the plan was still at the basic stage. Sutcliffe said there was no final decision, but he expected a clearer picture to emerge in the next two to three years.
Even so, the ambition is clearly intertwined with political and regulatory issues. In January last year, former President Joe Biden effectively closed the door on Chinese-made cars through rules banning Chinese-made vehicle software and hardware.
Trump is not entirely friendly either. In 2024, he had stated that Chinese car manufacturers would be subject to a 100 percent tariff or even 200 percent if they tried to sell cars in the US. However, he still opened the door to enter if they produced in America and employed local workers.
"If they want to build a plant in Michigan, in Ohio, in South Carolina, they can do it, using American workers. They can't send Chinese workers here, which they sometimes do. But if they want to do it, we welcome it, right?," said Trump.
The crucial question then is, do American consumers want to accept a Chinese-made car? A 2025 study from AutoPacific said that US citizens' interest in Chinese-made vehicles is growing.
Of the 18,987 consumers surveyed, more than half said they would consider buying a Chinese-made car, up 10 percent from the previous year. About 22 percent of respondents said they were very familiar with Chinese cars, while another 43 percent were somewhat familiar.
Brands such as Huawei (27 percent), Xiaomi (23 percent), and BYD (19 percent) are on the list of the most well-known. This means that 65 percent of respondents at least have awareness of Chinese automotive brands, up from 52 percent in 2024.
Another study by the Dave Cantin Group (DCG) produced similar findings. Around 40 percent of Americans said they would consider buying a Chinese-made car, and interestingly, 75 percent of dealers surveyed said they would not be surprised if in the next year they started selling Chinese-made vehicles.
Despite the increased interest, security concerns remain a major obstacle. In 2024, 80 percent of consumers in the AutoPacific survey said they were concerned about data and the security of Chinese-made vehicles. The figure fell to 77 percent in 2025, still high, but showing a downward trend.
On the other hand, Chinese-made cars are known to be aggressive in terms of technology, feature-rich, and especially in EVs, offering competitive mileage at lower prices. If Geely can actually produce vehicles in the US and avoid high tariffs, it is not impossible that they will become serious competitors in the price segment.
However, the US market is believed to be more interested in Lynk & Co's SUV model or Zeekr than a small electric car or entry-level sedan. With more price and features and competitive quality, there is no reason why American consumers will not seriously consider Chinese cars.
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