A made-in-China electric vehicle will hit U.S. dealers this summer offering power and efficiency similar to the Tesla Model Y, the world’s best-selling EV, but for about $8,000 less.
The EX30 from Volvo Cars, the Swedish luxury brand owned by China’s Geely, foreshadows the fierce competitive threat U.S. automakers could face from Chinese EV manufacturers that have surged far ahead of global rivals, especially on affordability. The $35,000 window sticker of Volvo’s compact SUV hits a sweet spot in the U.S. market, where most buyers cannot afford most EVs.
The EX30’s price and the buzz it’s generating help explain U.S. automakers’ rising fears of having to compete with low-cost Chinese EV imports. Industry trade group the Alliance for American Manufacturing said in February that cheap Chinese EVs could cause an “extinction-level event” for U.S. automakers. It warned that Chinese manufacturers could also avoid U.S. tariffs by setting up plants in Mexico, inside the North American free trade zone, then exporting vehicles to the United States.
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