Foreign companies ‘ market share of Chinese car sales is tracking at a record low of 37 per cent in the first seven weeks of 2024, along from 64 per cent in 2020, according to information from Automobility, a Shanghai firm. So far this year, US companies are over more than 23 per cent while Chinese, Asian and German carmakers have likewise suffered double-digit falls, the information showed.
By contrast, selling of Chinese companies are up nearly 22 %, with Chinese firms increasingly capturing the top spot in the EV business.
WHEN CHINESE EXPORTS ARE ADDED TO WESTERN Trucks
The parties ‘ market share declines are occurring in the framework of a divided domestic automobile market in China. Sales of Vehicles, including real power Batteries and plug-in variants, are up more than 30 per cent this year while sales of fuel-powered cars are lower roughly 7 per share, the Automobility data also showed.
In response to this, foreign manufacturers, including Hyundai, Nissan, Volvo, and BMW, have started reversing their manufacturing operations in China, according to recent company announcements and media reports. More than half of the Chinese-made electric vehicles imported into Europe in the first four months of the year, according to a report from The FT in June that included Tesla, Volkswagen, and Honda.
Tu Le, the founder of Sino Auto Insights, predicts that Stellantis, the owner of the Jeep, Peugeot, and Fiat brands, will eventually all export from China. Additionally, he thinks that as foreign organizations become more financially challenged, they will likely need to increase their sourcing from Chinese suppliers to stay competitive.
Chinese companies, spearheaded by Warren Buffett-backed BYD, are rapidly expanding their global manufacturing footprints. Foreign companies will increasingly have to keep up with cheaper, and potentially more technically advanced, Chinese-branded models all over the world.