(Natural News)—A Chinese-made electric vehicle is set to arrive in the United States’ EV market this summer, boasting power and efficiency comparable to the Tesla Model Y but with a $8,000 lower sticker price.
The EX30 electric SUV, a product of the Swedish luxury car brand Volvo, is a five-seater electric SUV with a 275-mile driving range and a five-second, zero to 60-mile-per-hour time, all at a competitive price of $35,000. The specs of the EX30 closely match the Tesla Model Y, except that the latter has more cargo room and has a cost before taxes and incentives of $42,990.
Volvo is one of the few carmakers in the U.S. that source their manufacturing in China, but the brand claims it still runs its own show and designs its cars in Sweden even though, since 2010, Volvo has been owned by Chinese automotive company Geely.
According to Climate Depot, the Volvo EX30 EV offers such competitive pricing in the U.S. due to several factors. Firstly, China has cheaper cost advantages and Volvo avoids U.S. tariffs due to its American manufacturing operations. Secondly, the dominance of China in the EV battery supply chain helps Chinese EVs undercut global competition. Lastly, Geely saves operational costs by sharing resources with Volvo and other brands it owns.
Furthermore, the price of the EX30 is expected to drop further if people lease it because of a loophole in the Inflation Reduction Act of 2022.
The law reinstated a $7,500 tax credit for EV buyers but excluded vehicles with components from countries considered economic or security threats, including China. However, the Internal Revenue Service has recently clarified that leased EVs qualify as commercial vehicles and are eligible for the subsidy without the restrictions related to components coming from China. In other words, this could make leasing an EX30 only $27,500.
China already dominating America’s EV market before selling its first car
In a 2023 Business Insider report, Alexa St. John wrote about how China is already dominating the American EV market even without selling a single car.
All this despite facing Wuhan coronavirus (COVID-19) lockdowns, economic uncertainties and the gradual phasing out of government EV subsidies. (Related: SUPPLY CHAIN WARNING: China flexes world domination muscle, restricts mineral exports vital for semiconductors and EV battery production.)
Chinese electric car companies like Geely, XPeng, Li Auto and Nio have gained significant traction in the global EV market, collectively capturing a 17 percent increase in market share in 2022, while non-Chinese automakers witnessed an 11 percent drop. Notably, BYD alone sold nearly 1.8 million EV batteries and plug-in hybrids in China in 2022, surpassing Tesla’s global sales figures.
The Chinese auto industry is now setting its sights on international expansion, with the U.S. as a prime target.
“What happens in China will not stay in China,” said Bill Russo, the CEO of advisory firm Automobility. “If you have that kind of supply chain, that kind of position on the chess board, then why wouldn’t you take that internationally?”
Chinese automakers possess several advantages in the U.S. market, especially with the lower cost of their vehicles compared to American brands.
And even if it fails to dominate the U.S. car market, its control over the global EV battery supply chain, including raw materials, processing, cell manufacturing and more, still gives China control over a majority of the production capacity in 2027. China has controlled about 75 percent of all battery cell manufacturing capacity and 90 percent of battery anode and electrolyte production since 2022. Since then, giant CATL, along with U.S. automakers GM and Tesla, have been dependent on China for their battery needs.
Even as the U.S. produces more mineral extraction here and the U.S. battery-making industry grows, much of these materials are still sent to China for processing.
Visit CommunistChina.news for stories related to China’s moves to dominate the global economy. Watch the video below that talks about the danger of America’s supply chain dependence on CCP.
This video is from the Chinese taking down EVIL CCP channel on Brighteon.com.
More related stories:
- Report suggests legacy automakers and EV manufacturers are “at risk of ties” to Uyghur FORCED LABOR in China.
- Saudi Arabia signs $5.6 billion deal with China to boost the kingdom’s EV industry.
- China enacts export restrictions on two crucial metals amid escalating trade war with US.
- Taiwan pushes back, won’t let US destroy semiconductor factories to prevent them from falling into Chinese hands.
- Experts: Semiconductor ban accelerates severing of US-China ties.
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