Three causes China is taking on the worldwide automotive market

OK, I will admit it, my headline is slightly however overblown.

However, the rise of Chinese language carmakers is sending shock waves via the worldwide auto trade.

For instance:

• Honda and Nissan to start merger talks
• Nissan and Honda are mentioned to be in talks to arrange a holding firm

Through the Wall Avenue Journal (gated):

• Within the U.S., Common Motors mentioned this month it was taking $5 billion in costs associated to its China enterprise
• In Germany, Volkswagen is threatening to shut factories and minimize tens of hundreds of staff … One of many underlying causes is the hit to VW’s earnings from misplaced market share in China.

The Journal article factors to a few China developments behind the strikes:

1. Over half of recent vehicles offered in China right this moment are both totally electrical autos or plug-in hybrids

2. Three in 5 Chinese language patrons are selecting a home model, the best ratio for the reason that nation emerged because the world’s largest automotive market.

three. China’s passenger-car exports quintupled between 2020 and 2023, hitting four.1 million autos final yr, in keeping with trade information.

Issues are solely going to worsen for non-Chinese language car manufacturers, earlier than they get … worse nonetheless.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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