No matter what level of interest you might have in the auto industry, there’s a good chance you’ve heard a lot of talk lately about China. Mostly, this talk revolves around tariffs and all of the drama going on there, but there are other areas worth considering when it comes to China and the auto industry. Electric vehicles (EVs) are a particularly notable aspect of the auto industry in which China has a massive role, not only in terms of manufacturing but also in terms of sales. Whether you’re talking about battery electric vehicles (BEVs) or plug-in hybrid electric vehicles (PHEVs), China is the undisputed biggest market in the world, which could have a major impact on the auto industry here in the US.
Is China Leading the EV Market?
There are two major aspects of the auto industry that you have to consider when it comes to EVs and China: its market for sales and its manufacturing. Starting with sales, China is well established as a financial superpower when it comes to buying power. It has a massive population, and any global manufacturer that ignores China is likely missing out on a huge potential for profit and growth. The EV market is the perfect example of this: China has a lot of drivers and EVs have grown in popularity over the last decade or so there, resulting in China dominating the EV market on a global scale.
In January 2025, China accounted for more than 73% of global PHEV sales and more than 53% of BEV sales, according to data from Autovista Group, which is part of J.D. Power. By comparison, the second-biggest country for EVs globally was the US, which had just a 4.5% share of PHEV sales and 12% of BEV sales. If you group the entire EU together, then they become the second-biggest market for BEVs and PHEVs, but China is still so far ahead of everyone else it’s ridiculous. This wasn’t a fluke for January 2025 either; it’s a trend that can be seen throughout all of last year. You can see why so many people talk about China when discussing EV sales—it can’t be ignored.
What About Chinese EV Manufacturing?
China’s place as the market leader when it comes to EV sales is undeniable, but its place in manufacturing is a bit more complicated. Companies in China have been working hard for well over a decade to deliver incredibly budget-friendly EVs for their customers, yet they are not the global winner. The top-selling BEV worldwide in January was the Tesla Model Y with more than 63,000 units sold, based on that same data from Autovista Group. Second place is the Geely Xingyuan, a Chinese BEV, with just over 28,000 units that month. See that difference? Tesla sold more Model Ys than second and third place combined (and third was the Tesla Model 3, further demonstrating the brand’s continued dominance in the EV market).
However, looking at the top-selling BEV models worldwide in January, the only other model that isn’t from a Chinese company is the VW ID.4 down in 10th place. The other seven are all from Chinese brands like Geely, Xiaomi, and BYD; these might not be household names here in the US like Chevy, Ford, and Chrysler, but you better believe they are in China. Tesla has worked hard to claim its top position, especially when it comes to aggressively courting the Chinese market, but I don’t have to tell you that Tesla is in a tough spot at the moment, so its future is far from certain. The Chinese brands, however, have been pushing to export into new markets and have found a lot of success in Europe and other Asian countries.
Will We See EVs from China in the US Soon?
This is the big question and one where a lot of controversy certainly comes up because it’s a complicated issue. Despite what some news outlets with attention-grabbing headlines might suggest, we’re not going to see a consumer BEV from China sold here in the US anytime soon. For one thing, massive tariffs are a real issue; even before the current hubbub with the Trump Administration, President Biden had placed a 100% tariff on EVs coming from China. One of the most appealing aspects of BEVs built in China is their incredibly low price, with some new models selling for less than 60,000 yuan (roughly $8,000). Monstrous tariffs quickly eliminate that advantage (this is actually the purpose of tariffs, so they’re doing their job in this instance).
The other major issue is that all vehicles imported into the US have to meet certain standards for emissions and safety. Emissions aren’t a problem for EVs, of course, but those safety standards are another issue entirely. A Chinese manufacturer would need to make models specifically for the US with this in mind. This means the clearest path for a Chinese EV to hit the road in the US is for a company like BYD or Xiaomi to build a factory here or in Mexico, alter an existing model to have safety features that meet US standards, and then go from there. At that point, they’re not going to be able to sell vehicles for $8,000, which eliminates much of what makes EVs from China so appealing.
What Kinds of Chinese EVs Might Do Well Here?
Let’s assume, for a moment, that Chinese manufacturers figure out how to overcome the hurdles I just mentioned; what models would US drivers actually want? The top answer, as far as I’m aware, is simply: cheap! American drivers desperately want more budget-friendly models instead of all being pushed toward vehicles that start at $30k or more (the average price of new vehicles Americans are buying is nearly $50k these days). Something like that second-top-selling model, the Geely Xingyuan, could be a great option since it’s a hatchback that looks quite stylish. If it was available at around $20k, it would likely be a hit.
The other way that Chinese companies could go is more high-end and aim to directly compete with Tesla and similar brands here in the US. Many reviewers who have had a chance to drive some Chinese BEVs have been quite positive about the Xiaomi SU7 (the fifth top-selling model in January worldwide), which is a sporty sedan often compared to the Tesla Model S thanks to its impressive performance and a lot of options for customization. The BYD Han could also do well (and actually already has a website aimed at the US market) since it’s a gorgeous luxury sedan with very impressive performance, though its price would make it compete with established brands like Mercedes-Benz. Something like the BYD Seagull (sold in South America as the Dolphin Mini), one of the cheapest models on the market in China, could be a better fit for folks looking to leave the gas pump behind and save money.
The Future of China and the US in the Auto Industry
Even if we put aside tariffs (especially the incendiary situation right now), Chinese companies have a serious uphill battle on their hands when it comes to bringing their models to the US. I didn’t even mention the fact that many Chinese BEVs are designed with pretty short ranges of less than 200 miles, which is part of how they keep their prices down. That’s just fine as far as I’m concerned, but range anxiety is still a thing in American car buyers and could seriously hamper how well Chinese cars do here.
Ultimately, US car companies aren’t going to back down without a fight, including pushing to maintain high tariffs and developing competition just in case. In theory, that means we should get more great options when shopping for EVs, but we’ll have to see if that’s the case. China can’t be ignored as a market or as a growing powerhouse when it comes to making vehicles; only time will tell how things ultimately shake out.
