China is posing to deliver at least one-third of all cars in the world by 2030 as its ramped-up production overtakes international trade barriers, according to a new auto industry analysis.
First reported by Automotive News, consulting firm AlixPartners predicted that Chinese automakers will soon outpace Mexico in the car market amid steady growth.
Even with the US's trade policies hindering China's market expansion, the firm projected that the Asian country will continue to increase sales by taking advantage of the US-Mexico-Canada Agreement.
The agreement, which grants vehicles entry to the US duty-free as long as parts come from North America, could allow Chinese automakers to bypass the 102.5% tariff when entering the US.
The same trend is projected across other parts of Asia, Europe, the Middle East, and Africa as China approaches nearly one-fifth of its car markets by 2030.
This is not to mention the ramp-ups in EV battery and engine productions to suit the growing demand in the US as it transitions to zero carbon-emission cars.
Chinese Automakers Offer Cheaper Alternatives for EV Owners
Another factor contributing to China's growing success in the auto industry is the huge price difference between its EVs compared to similar vehicles produced in the West.
Xiaomi recently announced that its new SU7 EV could be purchased for only 215,900 yuan (29,900 USD), far cheaper than Tesla's Model 3 cars which often start at $34,990.
The budget-friendly options Chinese automakers offer better access for many people who are still starting their journeys as EV owners.
Related Article : Xiaomi's SU7 EV Will Cost Under $69,400, Company CEO Teased
China-Made EVs Carry Production Issues
Despite China's emerging dominance in the car market, doubts and concerns still hound the upcoming industry amid reports of poor quality and safety issues.
The Xiaomi SU7 itself was previously criticized after several drivers complained about the car breaking down after just a few miles.
This is not to mention the overall poor quality of its exterior, making the cars nearly unrepairable.
