The recent surge in fuel prices due to the war in Iran has spurred demand for electric vehicles around the world, and Chinese car makers are making the most of the opportunity.
A huge domestic market is a strong advantage for Chinese manufacturers.
Even if every single country stops buying Chinese cars, they’ll still have a base of 1.5 billion potential customers.
With more countries actively partnering with China, this number goes up considerably.
Tho, maybe it’s because the Chinese don’t deal with these huge margins they have on cars now. A new car now costs tenfold what a new car would cost a few decades ago
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Are you sure on the TPMS date? I’ve got a vehicle that’s much newer than 2007 that doesn’t have it
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Most Americans would not buy a Chinese car anyway.
I love that Americans pretend to be the most important and competitive market. The combined population of Europe is twice that of the US. South East Asia is 700 million. And the choices in EV’s is triple that off the US.
These are the markets Chinese manufacturers are after. These markets accept Chinese cars based on the price, quality and innovation.
There are around 290m cars in the us for the 330m people
There are around 420m cars in Europe for the 730m people
So while the actual amount of cars in all of Europe is more than the US the percent car ownership in a single country is insane
Still, the absolute number is what matters, still bigger market.
If you are making an ad campaign, all of the US speaks the same language, generally has the same safety regulations, and a much larger percent of the people are your target ad personnel
The EU is a cohesive unit for regulations but speak many different language and once you branch out of the EU to all of Europe you can see why there are huge advantages to advertising in the US.
So no it’s not the absolute number that matters
California is famous for having different safety regulations.
I don’t see how the percentage should matter, absolute numbers matter. You get money for every sale, if you sell to 1% or to 99% is irrelevant.
Imagine you owned a store, what seems better, having 40 customers come in and all of them buy or having 80 people come in and all use up time with a salesman and then only 45 people purchase. You would end up spending a much more significant amount of the sales revenue on the larger showroom and more staff. This isn’t my opinion this is why the American market has been prioritized, that and the fact that Americans spend more on cars per year
California has different emissions requirements (not safety) but since they are a strict upgrade to the rest of the US (and comparable to other int markets) as long as you follow their requirements all cars in the US can be sold without any contradictory requirements
A very common kpi used is to examine the success of a campaign in a per target demographic so having the much lower response rate is worse
The 80 people with 45 sells, hands down. You don’t need more showroom, showroom depends on the product. You don’t need more staff, they work on commission, and again are proportional to the inventory.
Let alone that the comparison is pointless, in Europe people who don’t want a car don’t go car shopping and don’t consume any imaginary resources. You are in a town of 80 people and 45 visit your store to buy a car instead of a town of 40 where all 40 buy.
Well this is a waste of my time so I will leave you with one final look up. How many cars are sold per year in the US compared to Europe?
Hint the answer is the US