Mark this on your calendar—fast forward on your Google calendar or your Apple calendar to 2026. It seems like a long way away, but it’s really only a couple of years away. Let’s see if the majority of vehicles that are being sold are, I guess, obscure or Chinese electric vehicles. Right here’s one example of a company called VinFast. This is automotive news, and this example talks about how ultra-low EVs are going to take over the auto market—20,000 or less electric vehicles.
Now, this kind of looks like a car, but in reality, it’s more like a golf cart. It’s not the same as a traditional internal combustion engine vehicle. This company, VinFast, is starting to recruit dealers across the US, and they’re discussing with a majority of large, well-established dealers to be able to sell their vehicles. They’re researching demand and potential for this model.
Chinese EV Supply Chain Dominance
This kind of Chinese vehicle transition has been discussed in our videos before, but here’s another one: China owns the EV supply chain now and wants to sell you a car. Think about it. Right now, every appliance that you could buy for your house is not manufactured in the US anymore. Even US manufacturing companies like GE and Frigidaire are all manufactured overseas. Televisions are not manufactured here.
The auto industry has transitioned somewhat overseas, but they’re still US car makers like Stellantis and Ford Motors. The problem is that manufacturing gasoline-engine vehicles is very complicated, labor-intensive, and reliant on industry knowledge. That’s not a type of technology that’s done in Asia, in a lot of cases. It’s done in China in a lot of cases.
The Transition to Electric Vehicles
However, it’s going to be very easy to manufacture electric vehicles in China. They’ll be a little tinier, or, for lack of a better word, a little less substantial. But the idea is to transition driving from being a substantial, big, chunky, heavy vehicle to more of a thin, lighter vehicle. Even the transition to electric vehicles that current manufacturers are trying to do—they’re basically trying to take the form of a current gas-engine vehicle and put an electric drivetrain in it. Is it working? It’s not working, according to Auto Executives. EVs are not working.
Challenges with Current EVs
It’s not that electric vehicles per se aren’t working; it’s that the current type of electric vehicle isn’t working. Nobody wants to spend $50, $60, or $70,000 for a big, heavy electric vehicle that has a 200-mile range if it’s not going to have the same authority level as a gas vehicle. Nobody wants to spend that much on that kind of car. A different form factor would be good.
That’s why a lot of these little Japanese mini trucks are popular among people for a little commuter car. It’s also being pushed by the government. According to the Biden Administration, it has a goal of having electric vehicles constitute 50% of new vehicle sales by 2030. That’s a big number. Right now, it’s about 5%. 2030 is not that far away; it’s 5–6 years away.
In addition to having vehicles be more available, they also have to be more desirable. Right now, EVs are backing up on dealers’ lots. The kind of EVs that are being built now—if they want to get to 50%, they have to build something different, make them a whole lot cheaper, or both. That’s where this comes in—these types of Japanese-type vehicles come in. And whether or not that is the secret sauce is unknown.
I’m sure you have an opinion about it. Let us know in the comments what you think. But mark the calendar to see if these Chinese, more austere, lighter EVs become the norm, and more traditional Western gas, heavier, more substantial vehicles kind of go the way of the dinosaur.