AlixPartners, a global consulting firm, published its annual Global Automotive Outlook this week and found that Chinese car manufacturers are now playing a bigger role in setting industry standards. The report forecasts that Chinese car brands will make up 33 per cent of the global market share by 2030, including by selling nine million units beyond China’s borders.
“China is the industry’s new disruptor – capable of creating must-have vehicles that are faster to market, cheaper to buy, advanced on tech and design, and more efficient to build,” Mark Wakefield, global co-leader of the automotive and industrial practice at AlixPartners, is quotes as saying in a news release about the report. “For traditional (original equipment manufacturers), keeping pace with China’s strongest brands will require more than a course correction.”
Over at CleanTechnica, Steve Hanley has shared his key takeaways from the report, which he calls a “wakeup call for the automotive industry.”
The likely dominance of the world new car market by Chinese companies is one of the expected benefits of more than $230 billion in direct and indirect subsidies by the Chinese government over the past decade. Whether one thinks those subsidies are fair or not, they happened and the Chinese auto industry is now about to reap the benefits. Erecting tariff barriers may serve some purpose — such as preventing an implosion of domestic production and the loss of hundreds of thousands of jobs — but it clearly is not a long-term solution.
“AlixPartners Predicts Chinese Automakers Will Have 33% Market Share By 2030,” By Steve Hanley, CleanTechnica, June 27, 2024.
Some may say the market for electric cars is shrinking and that some EV drivers are going back to conventional cars because they are frustrated by how difficult it is to find public chargers, but clearly, AlixPartners does not foresee the world at large turning its back on electric cars, especially low-cost examples from Chinese manufacturers.
Read the full article on the Global Automotive Outlook originally published by CleanTechnica on June 27, 2024.
