Today Zotye, a Chinese automobile company officially declared that the company would be entering into the US market by the end of 2020. Zotye which is a Chinese domestic automobile company that operates mostly in China decided to expand their business globally, and they want to expand their global market by starting with the USA. Currently, there are no foreign companies in the US automobile sectors, and if Zotye succeeds to enter into the US, then it will become the first Chinese automobile company in the USA. Zotye has entered into the partnership with the California based start-up called HAAH to come into the US market, and according to HAAH website, the first Zotye USA model will arrive by the fall of 2020.
Automobile industry of USA is dominated currently by large companies like Ford, General Motors, Volvo and most of these companies import their cars from China. But recently due to the ongoing trade war, most of these companies have stopped importing cars from China, which is mostly affecting their businesses. Since now Zotye has decided to enter US market it will not be that easy for this Chinese company to beat already well established US automobile companies. A foreign company who wants to set their business in the USA have to comply with more laws and regulations, and that’s the reason why Zotye decided to venture with HAAH, which will make them easy to establish themselves as a unique brand.
While discussing regarding this matter during a press release, the senior vice president of HAAH said, “The Company will be able to add some more unique and useful features in their upcoming cars, which will attract more customers.” On the other hand, Zotye is already in controversy in their domestic market because the company’s been accused of copying the designs of other cars. Now they have decided to enter the US market where they will have to meet up to customer’s expectations otherwise it would be hard for them to survive in this most competitive industry.