https://electrek.co/2024/03/22/byds-new-ev-starting-under-10000-stoking-fear-rivals/
China requires frontal airbags now, so I don't think the "safety feature" price differential is what it once was. No wonder GM is scared.
American auto industry has been targeting only the high rollers and early adopters, people that don't blink at laying down over $60K for a car. That's a very limited market.
Not just the US automakers.
That was the same complaint the finance manager at Hyundai had when we bought our car.
They were finally getting in some cheaper cars, which is why we finally bought one, but he said that for the longest time they were just turning people away because everything they had was $60k and up.
Toyota was much worse than Hyundai, Subaru or Ford. Nothing but high-trim cars with huge dealer markups.
I think if production is constrained it makes sense to only produce the highest margin products, but then it becomes a self-fulfilling cycle - everyone who comes in wants a luxury car, yes, but that's because hardly anyone is coming in.