Chinese auto manufacturers have gobbled up huge market share in Europe and Mexico. It is now widely accepted in many business and policy circles that it’s just a matter of time until the U.S. auto market is captured by an invasion of Chinese electric vehicles. (RELATED: Canada, California, and Chinese Electric Cars)
If you are worried about this, you can relax. The great Chinese EV invasion is not going to happen, and if China does attempt to start dumping its glut of EVs in America, it will be a resounding failure. The U.S. auto industry faces much greater peril from irresponsible CEOs flushing billions of dollars away in pursuit of an all-EV future than it does from Chinese EVs capturing the fancy of American car buyers. (RELATED: EVs and Autonomous Vehicles: General Motors’ Doomed Focus on Unprofitable Boutique Products)
Within China, government subsidized over-production of automobiles, along with price-slashing to unload the excess inventory, has caused U.S. and European auto companies to suffer significant market share losses. Meanwhile, Western auto industry “experts” swoon at the dominance of Chinese cars in China. (RELATED: While Canada Cozies Up to China, Mexico Imposes Harsh Tariffs Due to Chinese Auto Dumping)
Something similar is playing out in other markets, where Chinese cars subsidized by the Xi administration are also gaining market share. Chinese manufacturers have captured about 10 percent of the European auto market. These are overwhelmingly pure battery electric or plug-in hybrid vehicles, benefiting from European mandates for an all-EV future. Not only is the Chinese government subsidizing the dumping of these vehicles at prices below European competition, but European consumers also get incentives from their own governments worth an additional several thousand Euros when purchasing these cheap Chinese EVs.
Mexico is another market where Chinese auto manufacturers have gained significant market share, and for the same reason as in Europe — China has been dumping heavily subsidized vehicles into the market at a price point at which legacy companies cannot compete. But despite the misleading headlines about Chinese cars in Mexico, these are overwhelmingly gasoline-powered cars, not EVs. As I documented in a recent American Spectator piece, China’s subsidization of its auto industry is forcing it to dump its glut of gas cars in places like Mexico, provoking Mexico to recently impose retaliatory tariffs.
U.S. politics, import tariffs, and the homologation necessary to get Chinese cars certified for American roads are probably enough to keep Chinese cars from ever reaching our shores. But even if Chinese EVs were offered for sale here, there is no reason to think Americans would even kick their tires, much less purchase one. (RELATED: EVs Are a Failed Experiment)
Disregarding the heavy incentives and subsidization that are compelling Europeans to buy cheap Chinese EVs, the European taste in vehicles is radically different than that of Americans. The roads, cities, driving evolution, and distances are nothing alike. Europeans prefer to buy small cars. Americans prefer full-size cars, big SUVs, and pickup trucks.
An overwhelming majority of Americans will pretty much not buy an EV under any circumstance, even if it’s heavily subsidized.
In addition, an overwhelming majority of Americans will pretty much not buy an EV under any circumstance, even if it’s heavily subsidized. With the (now terminated) $7,500 federal EV tax rebate, the market share for EVs in the U.S. peaked at barely 8 percent before subsidies ended. About half of that was Tesla’s luxury-boutique niche, with much of the rest being municipal and other fleet sales.
Volkswagen’s U.S.-made ID.4, an all-electric car, was such a sales flop that when VW became desperate to unload its glut of unsold units, it offered a $99 lease promotion. But even at $99 per month, Americans still found the price to be about $99 too high, as the unsaleable ID.4 became America’s slowest-selling car. If Americans will not drive an electric Volkswagen for $99 per month, there is zero chance they will buy a Chinese EV of dubious quality at any price. (U.S. production of VW’s ID.4 has since been permanently suspended.)
Vinfast is a Vietnamese auto manufacturer that is the top-selling brand in Vietnam, and its EVs are among the top-3 selling EVs in several Asian countries. Vinfast entered the U.S. market in 2023 to great fanfare, with plans for a North Carolina production plant. Although there are no published numbers, Vinfast is estimated to have sold fewer than 1,500 vehicles in the U.S. in 2025. Americans were skeptical of Vinfast’s quality and never gave it a chance. With China having earned a reputation for exporting products of low quality, there is no reason to believe Americans would give Chinese manufacturers the benefit of the doubt on a purchase as expensive and important as a car.
America has a long history of rejecting low-quality, imported automobile brands, from Renault and Peugeot to Yugo and Fiat, and there is a lingering hangover among those who gave those brands a try. During the post-COVID era of supply-chain bottlenecks, there was a shortage of new cars at dealerships, causing bidding wars among consumers willing to pay above-sticker price for most brands. There was one glaring exception, however — Fiat. From selling over 40,000 Fiats in 2012, reputational damage pushed Fiat’s U.S. sales below 1,000 units a decade later. If Americans wouldn’t buy a new Fiat during a nationwide shortage of new cars, it’s not rational to think Americans would buy a new Chinese car with so many other proven alternatives.
The best-selling Chinese car in recent years has been the BYD Dolphin Surf, a mini car. Americans, however, won’t buy reliable mini-cars from legacy manufacturers, even if they’re gasoline-powered. The Honda Fit is comparable to the Dolphin Surf in size, but it sold barely 35,000 units per year in the U.S. before being cancelled due to slow sales. By contrast, Honda was selling over 500,000 combined Accords and Civics when the Fit was axed. Over in Europe, BMW’s top-selling vehicle is the X1, a mini-SUV. In the U.S., BMW’s X1 sales are minimal, with the large X5 and X7 vastly outselling the tiny X1.
Aside from Americans’ general preference for vehicle size, those who do purchase small, inexpensive cars in the U.S. are demographically not good candidates for EV ownership. Small car buyers in the U.S. tend to be less affluent and somewhat transient, whereas EV-ownership almost necessitates that at-home charging is possible. The demographic that can charge an EV at home is homeowners and luxury condo dwellers, but this is also the demographic that buys Tesla and other luxury marques, not cheap cars.
The great Chinese EV invasion will probably not happen, but should Chinese EVs hit our shores, they will be emphatically rejected by discerning American consumers.
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