Dear MEL Topic Readers,
The retreat from the world’s largest auto market has begun
The number of light vehicles sold in the US has been around 16 million in the last few decades except during the financial crisis and Covid pandemic. It had been the largest automotive market until China took the lead in the 2000s. Over 20-some million new vehicles have been sold in the last decade in China and more than 30 million last year. This year, of the 30 million plus new cars projected to be sold, over 10 million, or nearly 40%, are NEVs, electric or plug-in hybrid vehicles. Indeed, China’s market growth has been driven by NEVs, which are dominated by Chinese automakers like BYD, which had never produced vehicles until recently. Combined with gasoline vehicles, around 70% of passenger cars sold in China are now under Chinese brands, which represented no more than 40% five years ago. For General Motors (GM), one of the largest automakers in the world, China had been contributing substantial sales and profits until recently. However, having lost its competitiveness in the NEV market, it is now losing both market share and money. GM isn’t the only foreign brand that is losing its presence in China. German manufacturers like Volkswagen and BMW, and Japanese auto giants like Toyota are all in the same or similar situation. Will the world’s largest automotive market be dominated by its domestic brands? NEV sales are growing in China and so are the Hybrid Vehicles in the USA. Green technologies seem to drive the automotive market more than just wheels and brands.
Read the article and learn about how the world’s automakers are struggling in the biggest market.
https://edition.cnn.com/2024/12/17/cars/automakers-china-losses/index.html
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