EV firms may find opportunity in American market under Biden: analysts

Chinese electric vehicle ( EV) producers may discover new opportunities for cooperation and expansion in the US market as the Biden administration aims to promote EVs as a means to achieve its ambitious climate goals.

The US is a developed vehicle market that some Chinese auto producers have failed to enter despite many efforts. But although Washington wants to support domestic vehicle manufacturing, Chinese players will keep trying, observers said.

US President Joe Biden said during a briefing on Monday “the federal government owns an enormous fleet of vehicles, which we’re going to replace with clean EVs made right here in America, by American workers,” while announcing his “Buy American” executive order. Biden wants to offer incentives for US consumers to replace fuel cars with EVs, although no details are yet available.

The news lifted Tesla, the US EV giant, General Motors and Ford, which are investing heavily in EVs. Three Tesla challengers from China – NIO, XPeng and Li Auto – saw their shares rise in the US following Biden’s announcement.

NIO told the Global Times on Thursday that “we are a global start- up company, so we look forward to entering more global markets. We have plans to enter the European market this year. We will find a suitable time to announce the specific time schedule and related information.”

Compared with the attractive European market, where EV sales are rising, helped by government subsidies, Chinese EV start- ups have avoided the tough US market.

“But there’s an opportunity. The EV sector in the US is still wide open. The EV supply and industry chains are still not mature, and there is room to tap into” the sector, said Cui Dongshu, secretary general of the China Passenger Car Association.