March 21, 2023
It's Tuesday. Let's get to it.
1 big thing: Chinese automaker grabs a U.S. toehold
Nio, a Shanghai-based automaker, has hired a U.S. lobbyist, Alan writes.
Why it matters: The move shows that Chinese automakers will need all the influence they can muster to overcome potential trade barriers and win over American consumers.
Driving the news: Nio has tapped William Ashworth and Ganesh Iyer, per a lobbying registration form spotted by eagle-eyed Axios colleague Ben Geman.
- The pair expects to lobby on "issues that will promote and encourage the sale and development" of Nio's EVs, the filing says.
- Issues include tax incentives, tariffs, trade restrictions, safety, and data privacy, Ben notes in Generate.
What they're saying: Hiring lobbyists is "a harbinger of capital investments being made," K. Venkatesh Prasad, chief innovation officer at the Center for Automotive Research, tells Alan.
State of play: Nio recently signed a 10-year lease for an office in San Jose, Calif.
- The company reportedly aims to begin selling passenger vehicles in the U.S. as soon as 2025.
Context: Chinese automakers have become the world's largest car and EV manufacturers by volume.
- The country is on track to overtake Japan as the biggest vehicle exporter.
What's next: This isn't exactly happy news for automakers already in the U.S.
- China's EV manufacturers "come with not just the technical capabilities and the manufacturing capabilities but also the business capabilities," Prasad tells Alan.
The bottom line: More competition for automakers is coming. For consumers staring down eye-watering car prices, more competition is a good thing.