American drivers may not be able to buy Chinese cars yet, but the high-tech EVs are already cruising the streets of El Paso. The Wall Street Journal reports that just across the border in Ciudad Juárez, Mexico, dealerships packed with brands like BYD, Geely, and Great Wall are selling sleek, tech-heavy vehicles to Mexican buyers who then drive them daily into the US for work, school, and errands. Some models start below $20,000, a price point that has largely vanished from the American new-car market. Geely salesman Luis Hernandez says Chinese models are already converting longtime Ford and Chevy loyalists. "If they were allowed to be sold in the United States, they would destroy the American car market."
Auto executives sound uneasy. Hyundai Motor Company CEO Jose Munoz says competing with Chinese prices without losing money is "very difficult—not to say impossible." Chinese brands, heavily backed by Beijing and benefiting from lower labor costs, are surging globally, taking about a quarter of Mexico's market while expanding across Europe and Asia. US consumers appear intrigued, too, with a survey by market-research firm Strategic Vision finding roughly 30% of American buyers open to purchasing a Chinese vehicle.
Washington, meanwhile, is trying to slam the door. Chinese-built cars face steep US tariffs, and registering a Chinese car bought in Mexico remains extremely difficult. But as Reuters reports, Chinese automakers are already redesigning vehicles (including gas-powered ones) specifically for foreign buyers in what analysts are calling their "Yaris moment"—a reference to the locally tailored Toyota hatchback that helped the Japanese company break through in Europe decades ago. Carmakers including BYD, Chery, and SAIC's MG brand are building export-focused hatchbacks, pickups, and SUVs aimed at markets like Europe, Australia, and Mexico. "The Chinese are going to find a way to get to the US market," Nissan Americas Chairman Christian Meunier tells the Journal. "It will happen."