Home News INDUSTRY NEWS Is the United States going to take action against Chinese golf carts again?

INDUSTRY NEWS

Is the United States going to take action against Chinese golf carts again?

On May 14 this year, US President Biden announced an increase in tariffs on $18 billion worth of goods imported from China.

Among them, the tariff on Chinese electric vehicles will be increased from the current 25% to 100%.Including the additional tariff of 2.5%, the combined tariff rate will reach 102.5%.Recently, the two largest golf cart manufacturers in the United States have urged the government to impose a 100% tariff on golf carts and other low-speed battery-powered personal vehicles made in China.Is the United States going to take action against Chinese golf carts again?

Production Exceeds Demand

As the name suggests, golf carts are passenger vehicles designed and developed specifically for golf courses.

This type of car is not big and can generally only accommodate two people. It is mainly used to carry golf equipment and drive on the golf course.

In order to highlight environmental protection and comfort, most golf carts are now powered by batteries.When it comes to electric, this is our advantage.my country is the country with the most complete electric vehicle industry chain in the world, and its electric vehicle production ranks first in the world, so it is no problem to produce golf carts.At present, my country's golf cart production has accounted for 29.66% of the world's total, second only to North America (37.83%).In 2030, my country's production share is expected to grow to 32.60%.It is worth noting that in my country, golf carts are a product whose production is significantly greater than the demand.The reason is not difficult to understand.Golf is still a niche sport in my country.Previously, in response to the blind construction, my country also carried out a special cleanup and rectification of golf courses.Now, there are only more than 400 golf courses across the country.According to the standard calculation of 100 golf carts for an 18-hole golf course, the market capacity of golf carts in my country is only about 40,000.Judging from the data in the past five years, the growth of demand for golf carts in my country is not fast, and there is not much room for the future.The domestic market capacity is limited, which forces Chinese companies to seek overseas markets.

 

Best-selling in the United States

The largest overseas market is the United States.Data shows that there are more than 30,000 golf courses in the world, and the United States accounts for more than half.At the same time, the United States is constantly building new golf courses.In addition, Americans also like to use golf carts as a convenient means of transportation.Golf course-specific + convenient transportation make the United States the world's largest golf cart consumer market.According to the data from the General Administration of Customs, in 2023, my country exported a total of 181,000 electric golf carts, of which 136,000 were in the US market, accounting for as high as 75%.The United States is the largest export destination for Chinese electric golf carts.

In 2020, the number of electric golf carts exported from my country to the United States was only 33,000; in 2023, it has increased to 136,000.Such a high growth rate is exactly what American companies are afraid of.Club Car is the world's largest golf cart manufacturer. Its president and CEO Mark Wagner claimed in an email statement:(From) China's imports have grown rapidly, while using the price advantage brought by the Chinese government's subsidies to promote its own advantages, it has occupied a larger share of the consumer car market. We must take action.

This rhetoric is completely "making up a false accusation".The reason is exactly the same as the reason why the United States suppresses my country's electric vehicles, both of which attribute the price advantage of Chinese manufacturing to government subsidies. For China, it is not difficult to produce golf carts.In particular, a complete electric vehicle industry chain can further reduce the cost of production and manufacturing.Of course, the competitiveness of China's electric golf carts does not only come from price, but also from rich functions.

Prepare for a rainy day

If the United States insists on its own way, how should Chinese companies respond?

First, diversify operations.Golf carts are a type of field electric vehicles.Tourist attractions, hotels, factory sites and other venues all need special vehicles similar to golf carts.Golf cart manufacturers should expand more application scenarios and diversify operations.a leading Chinese leisure vehicle company located in Lishui City, Zhejiang Province, produces electric scooters, electric balance bikes, electric bicycles and other new energy intelligent products, as well as fuel products such as all-terrain vehicles and off-road motorcycles in addition to electric golf carts.In terms of revenue, golf carts only accoun.