In July 2024, the Zhengjie Bureau reported “The United States is going to start on China’s golf carts again?” On May 14, U.S. President Joe Biden announced tariffs on $18 billion in imports from China. Tariffs on Chinese electric vehicles will rise to 100 percent from the current 25 percent. Including an additional 2.5 percent tariff, the combined rate would be 102.5 percent.
More recently, two of the largest manufacturers in the United States encouraged the administration to impose 100 percent tariffs on Chinese-made golf carts and other low-speed, battery-powered personal cars.
Supply exceeds demand
Golf cart, as the name suggests, is a passenger vehicle specially designed and developed for golf courses. This kind of car, not big, is mainly used to carry golf equipment, driving on the course. In order to highlight environmental protection and comfort, today’s golf carts are mostly battery-powered.
When it comes to electric power, this is China’s advantage. China is the world’s electric vehicle industry chain is the most complete country, the production of electric vehicles in the world’s first, the production of golf carts is not a question.
At present, China’s golf cart production has accounted for 29.66% of the world, second only to North America (37.83%). By 2030, China’s share of production is expected to increase to 32.60%.
It is worth noting that in China, golf carts are a product whose output is significantly greater than the demand. And it’s not hard to see why. Golf is still a niche sport in China.
Earlier, in response to the situation of blind construction, China also carried out a special clean-up of golf courses. Right now, there are just over 400 golf courses in the country.
According to the standard calculation of an 18-hole golf course equipped with 100 carts, the market capacity of China’s golf carts is only about 40,000.
Sell well in the United States
From the data of the past five years, the demand for golf carts in China is not growing fast, and the future space is not large. Limited capacity in the domestic market has forced Chinese companies to seek overseas markets.
The biggest overseas market is the United States. Statistics show that there are more than 30,000 golf courses in the world, and the United States accounts for more than half of them. Meanwhile, the United States continues to build new golf courses. In addition, Americans also like to use golf carts as a convenient means of transportation. Course dedicated + convenient transportation, making the United States the world’s largest consumer market.
Data from the General Administration of Customs show that in 2023, China exported a total of 181,000 electric golf carts, of which 136,000 were in the US market, accounting for 75%.
The United States is the largest export destination for Chinese electric . In 2020, the number of Chinese electric golf carts exported to the United States is only 33,000; By 2023, it had grown to 136,000 units. Such rapid growth is precisely what corporate America fears.
Mark Wagoner, president and CEO of Club Car, the world’s largest maker of golf carts, said in an emailed statement that imports from China have grown rapidly, taking a larger share of the consumer car market while using the price advantage of Chinese government subsidies to drive its own advantage. We must act.
This kind of rhetoric is completely “wanting to add guilt”.
As already analyzed above, it is not difficult for China to produce carts. In particular, the perfect electric vehicle industry chain can lower the cost of production and manufacturing. Of course, the competitiveness of China’s electric golf cart is not all from the price, but also a wealth of functions.
The golf cart products produced by many manufacturing companies in China can not only charge wirelessly, but also have personalized customization such as audio, light belts, and car refrigerators. Once launched, it sold well in the United States, Italy, Mexico, South Africa, Southeast Asia and other countries. Feature-rich and cost-effective, it is not surprising carts sell well in the United States.
Plan ahead
If the United States goes its own way, how should Chinese companies respond?
First, diversification. Golf cart, belongs to the venue of a kind of electric vehicle. Tourist attractions, hotels, factories and other venues need special vehicles similar .
Common sightseeing cars, golf cart manufacturers should expand more application scenarios, diversified business. Some enterprises in China, in addition to electric golf carts, also produce electric scooters, electric balance vehicles, electric bicycles and other new energy intelligent products as well as ATV all-terrain vehicle products. Diversified business, reduce dependence on a single product, reduce the business risk caused by trade friction.
Second, globalization. Global layout and localized production are one of the effective measures to deal with tax increases. Some of China’s auto industry has built factories overseas such as the United States, and the global layout not only ensures the stability of supply, but also helps improve the ability to resist risks in a complex international environment.
Facts have long proved that the imposition of tariffs on Chinese products will only significantly increase the cost of imports, causing more losses for US companies and consumers, and imposing greater costs on US consumers.
According to Moody’s, American consumers bear 92% of the cost of the tariffs on China. So far, this policy is not good for American consumers or Chinese companies, so why implement it?
