Chinese EVs you won’t believe are this affordable

The Chinese auto industry has been making some extremely affordable electric vehicles (EVs) for their home market. Now that the industry as a whole has a production capacity that is far more than the Chinese market itself can absorb, an export offensive has seen these low-priced vehicles being shipped to many different places around the world. Of the 4.5 million Chinese vehicles exported in 2023, over 50% of total exports by value were EVs. That equates to nearly $40 billion worth of EVs!

Chinese EVs have been shipped in significant numbers to Europe, specifically to Belgium, the UK, Spain, and Germany. Mexico is set to be the next market to deal with the Chinese invasion of cheap and cheerful EVs, with several manufacturers setting up their operations just across the border from the U.S.

Many of those are comparatively inexpensive without being boring, soulless commuters which got us thinking about what segment they would serve on our shores.

Is Mexico China’s Trojan horse?

The U.S. market has very few entry-level new cars in affordable price ranges. While Chinese manufacturers won't commit to selling cars here for obvious political reasons, some like BYD and GAC do have plans to build factories in Mexico to supply the local market and also to export, supposedly to other parts of Latin America. JAC has beat them to the punch, as the company has been building cars in Mexico for several years.

Could inexpensive Chinese EVs make it in the U.S.?

To answer this question, let’s take a look at some Chinese EVs that are currently being sold in Mexico. These are the entry-level EVs that Chinese manufacturers consider suitable for use in North America, or at least those areas south of our border.

BYD Dolphin Mini/Seagull

Let’s start with the smaller, least expensive EVs and work our way up.

The BYD Dolphin Mini (or Seagull, as it is known in its home market) sells for $10,000 in China but lands in Mexico with a starting price of USD 17,344 (MXN$358,800) powered by the less-expensive lithium iron phosphate (LFP) battery. If the basic car’s 190-mile range is not sufficient, you can upgrade to a larger battery with 252 miles of range for USD 19,277 (MXN$398,800). As with all sticker prices in Mexico, a 16% federal value-added tax is added, so the basic car’s pre-tax price is just under $15,000. The price is right, but it’s likely too small to make it viable in the U.S.

JAC E 10X

Here’s another small city car that is comparable to the BYD Dolphin Mini. It comes in at USD 17,261 (MXN$357,000), just under the BYD. It also has an LFP battery, as well as alloy wheels, a 10.25” multimedia screen, rearview camera, electronic stability control (ESC), ABS brakes, driver and passenger airbags, and rear parking sensors. Unlike the BYD, the JAC E 10X is made in Mexico but is also unlikely to end up on American roads thanks to its diminutive size.

BYD Dolphin

The BYD Dolphin, a compact hatchback, is the larger version of the Dolphin Mini/Seagull and is well-suited to the European market where a slightly longer, more crash-compliant version received a five-star Euro NCAP rating. It is not clear whether the European version of the Dolphin is sold in Mexico, but BYD is most of the way there if the company should ever want to make the Dolphin crashworthy for U.S. export.

SAIC MG4

This is not your father’s or your grandfather’s MG but rather what SAIC, the Chinese company that bought MG’s intellectual property, is currently producing. The MG4 is likely also coming to Mexico based on SAIC’s recent plans to establish a production base there. This EV has also been selling well in Europe, where it currently starts at €31,690, including the European value-added tax. Backing out the tax (averaged to 22%), which would not apply in the U.S., brings the price down to €25,975 or $27,248 in U.S. dollars.

BYD Yuan Pro

This BYD model is a compact SUV that sells for the equivalent of USD 28,026 (MXN$579,800). The Yuan Pro could potentially compete favorably against entry-level ICE SUVs like the Nissan Kicks, Hyundai Venue, and Honda CR-V. It is well-equipped, with Apple Carplay & Android Auto, GPS navigation, and cloud connection through BYD’s app. The Yuan Pro comes with a very optimistic NEDC estimated range of 236 miles (380 km), which would translate to a real-world EPA rating of around 153 miles.

Final thoughts

While it is highly unlikely that any of these imported-to or built-in-Mexico EVs will make it to our shores in the next four years given the incoming administration's anti-Mexico trade rhetoric, they will definitely be lining the highways and byways of the land to our south, as well as many other Latin American countries.

At some point in the future, if any Chinese manufacturers want to establish a U.S. manufacturing base (complete with battery production facilities) and navigate our complex automotive bureaucracy, we could even see some of them on our own roads.