The Declining Sales of Foreign Automakers and the Potential Market Exit of Some Brands Are Detrimental to the Integration and Innovation of the Automotive Industry Ecosystem and Increase the Risk of Supply Chain Disruptions Between China and Developed Countries.
Due to the late start of electrification among major legacy foreign automakers and the excessive reliance of joint venture on the internal combustion engine vehicle market, their development in the new energy vehicle sector has been sluggish, leading to consecutive years of declining sales.
By 2024, the market share of foreign branded passenger cars in China has dropped below 35%, and it is expected to continue declining 📉.
📜 A document from the China’s State Council points out that “foreign investment is an important force in participating in China’s modernization, promoting China’s economy, and contributing to the shared prosperity of the global economy.”
👉China auto industry experts believe that
1. In the automotive industry, foreign investment enterprises are key drivers of the integration and innovation of the automotive industry ecosystem.
2. They are essential components of China’s automotive technology innovation system, key participants in the development of new productive forces in the automotive sector, and vital contributors to the global strategic positioning of Chinese automakers and industry chain enterprises.
3. They also play a crucial role in regional economic and social development.
âś… Therefore, caution is needed regarding the significant decline in sales of foreign automakers and the potential exit of some brands, as these developments could bring economic, technological, and trade risks in the future.
✍️What are your thoughts about the declining market share of foreign automakers in China?