This summer, a Chinese-made electric car will be sold in the U.S. It will have the same power and fuel economy as the best-selling Tesla Model Y, but it will cost about $8,000 less.
Swedish luxury brand Volvo Cars, which is owned by China’s Geely, has released the EX30. This car shows how tough the competition could be for U.S. automakers from Chinese electric vehicle (EV) makers, who have jumped far ahead of their competitors, especially when it comes to price.
The $35,000 price tag on Volvo’s small SUV is just right for the U.S. market, where most people can’t afford most electric cars. According to interviews with four people familiar with Volvo and Geely’s strategies and several U.S. trade policy experts, the low price is due to a unique mix of Geely’s lower costs in China and Volvo’s ability to avoid U.S. tariffs on Chinese cars because it also makes cars in the U.S.
China has a long history of supporting EV development with heavy government subsidies and is a world leader in mining and refining battery minerals. This gives Chinese EV makers a big advantage over their global rivals.
Geely has also cut costs by combining supply chains and sharing platforms and parts with Volvo and other Geely brands, according to two senior Geely managers who did not want to be named because they are not allowed to speak publicly.
