US Auto Sales May Fall by 25,000 Units Yearly Due to Chinese Vehicle Ban

Sep 30, 2024 02:05 AM EDT

Auto sales in the United States might reportedly decline amid the restrictions on Chinese vehicles.

Reuters reported Friday that new regulations were proposed by the Commerce Department. The rules aimed to ban Chinese-connected vehicles and Chinese-built software and hardware in US vehicles.

The endeavor would reportedly lead to declining auto sales in the United States, as around 25,841 vehicles per year might get cut and prices could be increased.

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The Commerce Department also shared that automakers in the US may be "less competitive" in the global market due to their vehicles' higher prices. The rule could also have "noticeable effects" on car prices, estimating that between 1,680 and 25,841 fewer cars would be sold every year as an effect.

According to the department, the regulation could also affect an estimated $1.5 billion to $2.3 billion in vehicle inputs from Chinese or Russian carmakers in the US.

In August, the Biden administration previously looked to ban Chinese software in autonomous vehicles. The ban would cover cars with Level 3 automation, the level that allows owners to interact with the vehicle's advanced features.

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TAG : CHINESE CAR MANUFACTURERS IN THE U.S.