GWM head says it still wants to enter the U.S. EV market. Eventually.

Parker Shi, vice president of GWM Group and president of GWM International, considers U.S. President Donald Trump to be the most successful man in the world by certain metrics. Yet at the same time, Trump remains a significant obstacle in the Chinese automaker’s quest to access a global market.

“[People are] looking for power, looking for money, and they’re looking for name. Right? Donald Trump is the one,” Shi told his audience during GWM’s global Tech Day in Australia earlier this month. “But what’s the business looking for? Brand, volume, profit. Volume can be replaced by market share.”

GWM’s Tech Day was part of its international branding efforts, bringing some of its top executives to Melbourne to discuss the company’s plans for global growth. Though China is the largest auto market in the world, GWM is one of many EV manufacturers whose ambitions extend well beyond their home country’s borders. The company has been in the Australian market since 2009, when it became the first Chinese automaker to sell its cars in the country.

Yet while GWM aims to be a notable player on the global EV scene, the sizable yet inaccessible U.S. market continues to present a glaring challenge to these ambitions — as it does for all Chinese automakers.

When will GWM’s vehicles enter the U.S. market?

Speaking to Mashable, Shi confirmed that GWM had been looking to enter the U.S. market by 2021, having conducted research, planned products, and even set up infrastructure and employees. Unfortunately, political issues and tariffs have put such plans on hold indefinitely.

“We prepared for the USA market for many years,” said Shi. “We have the building there, we have the R&D team there. But because of the political issues, obviously, it’s not the right time to make the plan for USA. So this is an open secret. I don’t need to deny anything. It’s because of the political issues it’s difficult to invest [in a] manufacturing plant over there.”

Specifically, Shi noted the high customs duties and tariffs the U.S. currently imposes upon EVs from China. Such vehicles were previously subject to a standard 2.5 percent tariff until Trump’s first term in 2018, when he introduced an additional 25 percent tariff on Chinese goods. President Joe Biden subsequently increased tariffs further to 100 percent in 2024. 

U.S. tariffs on Chinese EVs have since fluctuated wildly under the current Trump administration, at one point skyrocketing to a whopping 247.5 percent. Understandably, such factors mean that the costs of investing in the U.S. currently outweigh the benefits.

“[If] you want to go there [to the U.S.], you have to put your money to build the factories or to acquire the factories,” said Shi. “We do have the product suitable for the USA market. But the problem is the investment of the manufacturing has become difficult. It’s a barrier. Direct investment is needed for USA market.”

GWM does still have ambitions in the U.S., with Shi stating that the company is reluctant to give up the chance to tap into such a large market. Even so, entering the U.S. simply isn’t feasible while the U.S. administration remains actively hostile toward Chinese automakers. When raising tariffs on Chinese EVs last year, Biden claimed that the Chinese government’s EV subsidy programs enable Chinese companies to “cheat” by selling cars at “unfairly low prices,” leaving U.S. manufacturers unable to compete. 

“We have some business in Mexico…. but now it’s also changing,” said Shi, acknowledging U.S. officials’ fears that Chinese automakers could go through Mexico to supply their cars to American drivers. China is Mexico’s leading auto supplier. “They’re supposed to stop Chinese investment in Mexico. Maybe they are thinking we are using Mexico as the base to export to USA. It’s a little bit complicated.”

GWM courts international markets that aren’t the U.S.

Credit: Courtesy of GWM

In the meantime, GWM has turned its attention to other countries such as Australia. The company took up residence in Victoria’s Lang Lang Proving Grounds earlier this year in order to test and tweak its vehicles for Australian conditions, adapting its approach depending on different countries’ specific needs. Shi emphasised that GWM aims to work with and understand people in different regions, noting that only 10 of GWM’s 110 employees in Australia are from China.

“With the local, for the local. With the Thai, for the Thai. With the Australian, for the Australian,” said Shi. “This is the kind of philosophy [which guides us]…. You must make yourself more local. Not only brand. Product, service, operations…. Everything must be local.”

Such considerations appear to be part of the reason why GWM doesn’t only manufacture EVs, also offering petrol and hybrid vehicles such as its Tank 300 and Cannon Alpha. Lack of infrastructure and charging facilities have slowed EV uptake in some markets, with the level of government support and incentives varying significantly between different areas. 

As such, Shi acknowledged that there’s still a need for traditional petrol-powered vehicles, particularly in countries which may not yet have the budget for widespread implementation of EV facilities. GWM is hoping to meet international customers where they are in the meantime.

“We believe new energy vehicles could be the future,” said Shi. “Of course, for the China market, definitely because the government gives a lot of support, incentive, tax reductions, so the EV penetration is very high.… So that’s why if you’re talking about the new energy vehicles in China, it’s over 50 percent market share. But the other markets I think could be slow because the government incentives or government support is very limited.”

“Some markets we understand, petrol, diesel, especially for commercial vehicles… [continue to remain] for a long time because facilities for charging, they need time [to be built]. And budget from the government to encourage the electronic vehicles, to encourage the plug-in hybrid vehicles, [is] still very slow….

“We try to follow the [future] trend, of course,” Shi continued. “EV could be very good for the environment, could be a great convenience. But we believe that different countries may have different usage scenarios.”

Shi offered the example of Australians driving between Melbourne and Sydney, two cities which are approximately 544 mi (876 km) apart. In such a scenario, drivers may be anxious about making it to the next charger. Further, Shi speculated that what chargers are available may be less advanced and take a significant amount of time to charge. As such, he suggested that plug-in hybrid electric vehicles would be more suited to cross-country driving, noting that GWM’s small Ora EV is designed for city use.

“This is why we are not investing [in] big models, big cars for EV,” Shi continued. “Some other Chinese players, they have a five metre-big SUV…. We’re not doing that. We have the capabilities to do that, but we don’t think that’s going to be the future. Especially [as] we are facing the global market. So different scenarios, different needs.”

Working to secure data, trust, and market share

Credit: Courtesy of GWM

For GWM, expanding outside of China “is a must.” However, foreign governments have expressed increasing suspicion towards Chinese tech companies in recent years, accusing them of giving the Chinese government access to customers’ data. Though there is no public evidence that this is occurring, the possibility has lawmakers leery. As such, Chinese companies with global aspirations have had to allocate significant resources into reassuring governments and countering such wariness.

“If you try to be a global player in different countries, we have to follow the rules and regulations of the countries,” said Shi. “This is the bottom line. This is number one.”

As part of this, Shi states that GWM keeps customer data on servers within their respective country. For example, Australian drivers’ data is kept on Australian servers.

“We have isolated the customer data, because the customer data is very, very sensitive,” said Shi. “This is the law…. We have to follow the law and [ensure GWM is in] compliance. This is the bottom line. You don’t cross the bottom line. You cross the bottom line, you’re going to burn your hand…. We don’t want to, [in the] short term, make something easy [and end up with a] lot of leaking, leaking, leaking a lot of the customer’s data. No, no, no. This is not allowed.”

GWM has been in Australia for almost two decades now. As of July, GWM was the seventh-best selling automaker in the country this year, and the number one best-selling Chinese auto brand. The company is still continuing to grow its foothold, announcing during Tech Day that its new Tank 500 plug-in hybrid seven-seater SUV will cost Australians $AU79,990 driveaway — approximately $US52,000.

Unfortunately, it will still be a long while before U.S. drivers can test out GWM’s vehicles themselves.

“I think we have the capability [to enter the U.S. market]. We have the product, we have the technology, we have the experience in global operation,” Shi told Mashable. “We are planning, we are observing, we are watching. We are watching how the USA policies [are] changing…. We have the team over there, but with the administration change, everything’s changed. Sorry for that!”

Disclosure: Mashable travelled to Melbourne as a guest of GWM.