International Business: Expansion of Chinese EVs in US Market

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Added on  2023/05/29

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This report examines the international business strategies of Chinese electric vehicle (EV) manufacturers as they attempt to penetrate the United States market. It explores the challenges and opportunities, including the need for product adaptation and the role of reverse innovation. The report discusses the importance of partnerships, such as the one with Wheego, and the impact of government subsidies on market entry. It analyzes the evolution of EV models, like the Noble, and their improvements to meet market demands. The report also highlights the significance of addressing traffic congestion and promoting green technologies. The study references several academic sources to support its findings, providing a comprehensive overview of the topic and its implications for the automotive industry and the broader context of globalization. The report also mentions that the government is supporting the sales of EVs to promote environmental sustainability. The report concludes that the expansion of the EV market is promising.
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Running head: INTERNATIONAL BUSINESS
International Business
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1INTERNATIONAL BUSINESS
Answer
The following scenario deals with some of the EV producers from the BoP of China will
penetrate into the market of the United States. Some of the lessons will be faced by the
indigenous reverse innovation in the time of the globalization indeed. The first lesson that the
indigenous reverse innovation had learnt was due to the marketing of the EV as the cars in China
itself (Wang et al., 2013). The product had to be reshaped and redesigned in the new ways so the
Hebei-based Shuanghuan could be launched in the markets of United States so they had to join
their hands with the Wheego.
The invention of the EV cars had been facing several issues while it was being produced
in China. As per the sources it could be said that almost 25 dealers from around 28 states had
signed the contracts with Wheego so it could come to the streets. Adding to that, around five
dealers had come up to sign with CODA as well. This could be much important factor to be
noted in this scenario as well. The contracts with Wheego became the turning point for the
globalization indeed (Mi & Masrur, 2017). The condition of the Noble had been quite improved
with the signing of this contract. The electric based vehicles had been improving its quality in
this area of the globalization. The new dimensions were being added as the features of the
electric vehicles indeed. Many BoP EVs have also appeared on the catalog produced by the
government for the subsidies (Wang et al., 2013).
The primary target has always been to promote the green cars in the country to support
the environment (Ehsani et al., 2018). The improvement of the Noble became the Wheego Life
and this had to be the most important improvement for the BoP cars indeed. The BoP EVs had to
be included in the improvement plan of China’s Development Plan for the ‘New Energy’ Car
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2INTERNATIONAL BUSINESS
Industry (2011-2020) indeed. The purchase of these cars would probably given with the proper
eligibility for the services in the automotive industry (Calabrese, 2016). The opportunities will
grow in the different cities like California, Maryland, Hawaii, New Jersey, New York, Utah and
many others. This is why the selling percentage of the EVs will go up as well. In this era of
globalization, there is a high need to get rid of the nationwide traffic jams and this could be
eradicated with the help of the BoP EVs from China (Ehsani et al., 2018).
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3INTERNATIONAL BUSINESS
References
Calabrese, G. (Ed.). (2016). The greening of the automotive industry. Springer.
Ehsani, M., Gao, Y., Longo, S., & Ebrahimi, K. (2018). Modern electric, hybrid electric, and
fuel cell vehicles. CRC press.
Mi, C., & Masrur, M. A. (2017). Hybrid electric vehicles: principles and applications with
practical perspectives. John Wiley & Sons.
Wang, X., Shao, C., Wang, X., & Du, C. (2013). Survey of electric vehicle charging load and
dispatch control strategies. Proceedings of the CSEE, 33(1), 1-10.
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