South Korean media: "Like South Korea and Japan, Chinese cars are conquering emerging markets!"
On April 6th, the South Korean media "Today Finance" published an article stating that although countries such as the United States and Europe are imposing tariff barriers on Chinese cars, it is evaluated that the market share of Chinese cars in emerging markets is rapidly increasing.
Bloomberg reported that BYD, Great Wall Motor, SAIC, and other Chinese car companies with price competitiveness are increasing their sales in Asia, South America, and Africa.
Bloomberg explained that although U.S. President Donald Trump announced measures to impose tariffs on imported cars, which increased barriers, in emerging countries, Chinese-made cars are thriving.
In South Africa, Chinese car sales have grown fivefold compared to 2019, with a market share approaching 10%. In Turkey, the market share of Chinese car brands was negligible in 2022, but by the first half of last year, it had risen to 8%.
China is the world's largest automobile exporter. According to data from the China Association of Automobile Manufacturers, China's passenger vehicle exports reached 760,000 units in 2020, and last year they grew by nearly 22%, reaching 5 million units.
According to S&P data, from January to October last year, Russia received the most Chinese car exports at over 950,000 vehicles, followed by Mexico (over 380,000 vehicles) and the UAE (over 260,000 vehicles).
Chinese car companies are also actively utilizing various electric vehicle incentive policies in different countries. In 2015, Chinese enterprises took advantage of Brazil's tariff exemption policy for electric and hybrid vehicles to lay the groundwork for entering the Brazilian market.
Despite concerns about the impact of Chinese electric vehicles in the United States and Europe, nearly 80% of China's total auto exports last year were internal combustion engine vehicles. This indicates that there remains significant demand for Chinese internal combustion engine vehicles in countries lacking charging infrastructure.
Consulting firm Alix Partners predicts that the share of Chinese automakers in the global market (excluding China) will grow from the current 3% to 13% by 2030. If the Chinese market is included, the market share is expected to reach 33% by 2030.
An analyst from S&P said, "Chinese companies are entering many global markets through high quality and price competitiveness. This strategy is the same as that of South Korean and Japanese brands, where even economy models come equipped with advanced software and numerous features."
Jim Farley, CEO of American Ford Company, said at an event, "Chinese companies are dominating emerging markets such as India and South America."
Original source: https://www.toutiao.com/article/1828639942857808/
Disclaimer: The article solely represents the author's views.