Despite efforts by the Trump administration to keep Chinese carmakers out of the U.S. market, these companies are experiencing rapid growth and acceptance in emerging markets worldwide. Countries like South Africa and Turkey have seen significant increases in the market share of Chinese automotive brands, which offer competitive pricing and features, enticing buyers who may otherwise choose established brands. As tariffs are placed on Chinese vehicles in North America and Europe, the appetite for these vehicles continues to surge globally, posing a challenge for traditional automakers.
Oscar Mabuela, a 29-year-old web designer living in South Africa, is the sort of customer that auto executives in faraway cities like Detroit, Tokyo and Wolfsburg have long coveted. Shopping for a new car this year, he considered a Volkswagen Polo hatchback, one of the top-selling vehicles in the country but got cold feet over fears of hijacking or theft. Instead, he bought a recent model year gasoline-powered Haval Jolion Super Luxury SUV from Great Wall for 350,000 South African rand ($19,300). A brand new 1.5-liter Jolion starts at $25,000, less than an equivalent 1.0-liter VW Polo's $27,500 sticker price. Mabuela said, "I get to have all the tech that are extras on known brands."
In South Africa, China-made vehicles account for nearly 10% of sales, or about five times the volume sold in 2019. In Turkey, Chinese brands claimed an 8% share in the first six months of 2024, up from almost none in 2022. In Chile, they have accounted for nearly a third of auto sales for several years running.
While the Trump administration is expected to shield the U.S.' Big Three from Chinese rivals at home, and Canada and the European Union have placed tariffs on Chinese-made electric vehicles, buyers in emerging markets have welcomed Chinese cars and trucks with open arms posing a new threat to growth-hungry global automakers.
China sends more vehicles abroad than any other country, and its passenger car exports surged nearly 20%.
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