Image: Now You Know on YouTube
In an interview on a recent episode of Now You Know’s In Depth series on YouTube earlier this week, automotive expert and outspoken Tesla proponent Sandy Munro talked about how Chinese electric vehicle (EV) manufacturers are coming for the U.S. auto market.
Tens of millions of cars are sold in the U.S. every year, and according to Munro, Chinese automakers want a piece of that action.
Munro says the current situation resembles the Japanese incursion of the U.S. auto industry that took place back in the 80s, with Japanese manufacturers invading the market with cheaper offerings and taking chunks out of American carmakers as a result.
Munro, who has worked with both veteran automakers in the U.S. and Chinese automotive giants, says the Chinese are solely focused on making all-electric cars with European build quality and that is going to be their prime weapon against homegrown manufacturers in the U.S..
In addition, the U.S. simply can’t match China’s volume production. In 2021, China is looking at a total of around 24 million units produced, whereas the U.S. would be lucky to post a number anywhere around 14 million units.
With the direction the world is headed in, most consumers buying cars right now want something that’s cheap, reliable, and most importantly, environmentally conscious. Traditional carmakers who are currently looking at 10-15 years before they transition from Internal Combustion Engines (ICEs) to an all-electric portfolio simply can’t compete with Chinese brands that only offer electric options, with identical levels of performance and user safety.
The only carmaker in the U.S. that can fend off the coming incursion according to Munro is Tesla, which holds a considerable lead over all of the other U.S. brands and is constantly innovating to extend its lead over the competition.
For example, Munro cited how Tesla is using smaller semiconductors that are 5mm or smaller from suppliers in Taiwan, and able to withstand the global shortage, while traditional automakers stick to 10mm chips that are in short supply and made in Indonesia and Malaysia, a chip “graveyard”.
Tesla’s Model 3 is the safest car in the world, has already established itself as a top-seller in Europe and the U.S., and regularly gives Chinese automakers the toughest of competition on their own home ground.
Watch the complete video interview:
