The article conveniently ignores Hyundai and Volkswagen, both of whom sell a ton of cars in Canada without building any here, and I don’t agree with the premise that Honda and Toyota only won over Canadians after they started building plants.
It starts as a value proposition, with manufacturer reputation and brand loyalty factoring more strongly as the price increases.
If China resists the urge to use their import quota to focus on more-profitable higher end models, buyers will almost certainly resist spending a lot of money on an unknown and unproven brand, especially with EVs struggling in general.
If they introduce themselves to the market with lower prices models that makes EV ownership much more attainable for the average person, they will likely find a more willing market since they will have virtually no competition. If those models prove to be decently made and supported, then they will start establishing their reputation and brand value, which can open up the market to higher end models down the road.
Hyundai established themselves here in the 80s with the Pony, which was by all means one of the world’s most bland and unimpressive cars, but being the cheapest car you could buy still found them a market. If China can enter by offering the cheapest EVs you can buy, they too, will find a market by basically creating a new one, since nobody else seems interested in that space.
sensorglitch on
I think we’re going to see a significant wave of pushback against Chinese-made cars, much of it framed as “legitimate concern” but ultimately rooted in thinly veiled sinophobia. People will claim the vehicles are collecting data on us, even though companies like Facebook and Google have been gathering far more detailed information for years. Others will argue that the cars are subsidized through exploitative labour practices or point to China’s human rights record as a blanket justification for rejecting the products. And of course, some will simply mock the cheaper EV models for having under 95 horsepower, as if that alone defines their value.
However, I think they will drive competition and for legacy automakers to innovate. Also I think it will show the use case for more ev infrastructure which market will fill.
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The article conveniently ignores Hyundai and Volkswagen, both of whom sell a ton of cars in Canada without building any here, and I don’t agree with the premise that Honda and Toyota only won over Canadians after they started building plants.
It starts as a value proposition, with manufacturer reputation and brand loyalty factoring more strongly as the price increases.
If China resists the urge to use their import quota to focus on more-profitable higher end models, buyers will almost certainly resist spending a lot of money on an unknown and unproven brand, especially with EVs struggling in general.
If they introduce themselves to the market with lower prices models that makes EV ownership much more attainable for the average person, they will likely find a more willing market since they will have virtually no competition. If those models prove to be decently made and supported, then they will start establishing their reputation and brand value, which can open up the market to higher end models down the road.
Hyundai established themselves here in the 80s with the Pony, which was by all means one of the world’s most bland and unimpressive cars, but being the cheapest car you could buy still found them a market. If China can enter by offering the cheapest EVs you can buy, they too, will find a market by basically creating a new one, since nobody else seems interested in that space.
I think we’re going to see a significant wave of pushback against Chinese-made cars, much of it framed as “legitimate concern” but ultimately rooted in thinly veiled sinophobia. People will claim the vehicles are collecting data on us, even though companies like Facebook and Google have been gathering far more detailed information for years. Others will argue that the cars are subsidized through exploitative labour practices or point to China’s human rights record as a blanket justification for rejecting the products. And of course, some will simply mock the cheaper EV models for having under 95 horsepower, as if that alone defines their value.
However, I think they will drive competition and for legacy automakers to innovate. Also I think it will show the use case for more ev infrastructure which market will fill.