More Than Affordability: Design and Technology Are Elevating Chinese Cars in Americans' Consideration

      James Arbuckle

      The most significant automotive news and reviews, no nonsense

      Our complimentary daily newsletter delivers the essential stories directly to you every weekday.

      The topic of Chinese cars often arises among automotive journalists. Like the general population, opinions are quite split on the matter. Various concerns, such as national security and the risk of many low-quality manufacturers leaving behind a trail of e-waste, are frequently mentioned. Currently, these issues are largely managed by a mix of national security and trade regulations that complicate or make it prohibitively expensive to market affordable Chinese vehicles in the United States. Until recently, most car buyers seemed content with this situation, but recent data suggests we may be reaching a turning point.

      Last year, AutoPacific’s annual Future Attribute Demand survey revealed that only about 40% of Americans were open to the prospect of purchasing a Chinese car. However, this year, following a survey of nearly 19,000 prospective buyers, this number has risen to 51%. Additionally, in troubling news for those opposed to Chinese vehicles entering the U.S. market, consumers are not only more accepting but also increasingly familiar with the brands and models available internationally, including Huawei and Xiaomi, which are leveraging their recognition from other sectors. What accounts for this sudden shift?

      “There are two primary reasons for this, which are interrelated,” Robby DeGraff, AutoPacific’s manager of product and consumer insights, explained to me.

      “Firstly, I believe that consumers are becoming increasingly attracted to the distinctiveness of various Chinese vehicles, whether they are NEV (EV/PHEV/EREV) or not,” DeGraff noted. “Many of these vehicles feature ‘radical’ and ‘fresh’ designs that aren’t replicated by manufacturers in our market, along with a wealth of unique and innovative features and technologies.”

      After all, while Tesla was the first to file a patent for EV battery swapping, China is where such unconventional ideas are actively being tested. While not all have been successful, dismissing the value of these cars simply because they aren’t sold in the U.S. could be a risky competitive stance.

      “As our domestic market seems somewhat hesitant to make significant strides in the development of EV/EREV/PHEV powertrains and accompanying infrastructure,” DeGraff remarked, “Chinese manufacturers appear to be advancing rapidly.”

      Then there is, of course, the issue of cost.

      “With last week’s figures showing the average car price around $50,000,” DeGraff stated, “any vehicle that successfully combines the aforementioned unique styling, design, features, and advanced powertrains at price points that are nearly unimaginable here is certainly generating more interest and consideration among U.S. consumers.”

      “People seem eager for truly innovative, trendy, and technology-forward products from Chinese automakers who are willing to take bold risks.”

      Their two main obstacles—privacy and national security concerns—remain significant, with only minor decreases compared to the previous year.

      “Secondly, and this is a brief point related to the first, there is more media coverage (in the automotive sector and beyond) focusing on Chinese vehicles,” DeGraff mentioned. “This increased awareness, buzz, and excitement stem from the distinguishing features that aren’t found in our market’s new vehicles.”

      You can attribute it to TikTok if you wish, but there’s more at play than mere marketing influence. American auto executives have largely accepted that Chinese cars will inevitably enter the market. Some CEOs of U.S. companies have praised certain Chinese cars as superior in several important aspects compared to those produced elsewhere, including domestically.

      Rivian’s RJ Scaringe disputes the idea that Chinese cars only have a cost advantage: “The technology is much better,” he asserted. Meanwhile, Ford CEO Jim Farley has likened China’s current automotive industry to Japan's and South Korea's during their previous rapid expansions.

      What’s your perspective? Are you open to driving a mainstream Chinese vehicle? Whatever your thoughts, feel free to share in the comments. The industry is paying attention.

      Have a tip? Reach out to us at [email protected]!