[Source/Observer Network, Ruan Jiaqi]
According to a report by the Financial Times (FT) on the 14th, on Wednesday local time at the FT Automotive Future Summit held in London, Maxime Picat, a core executive of Stellantis, the world's fourth-largest automaker, said that he was "shocked" by the extent to which foreign car manufacturers are losing their market share in China.
He warned that as Chinese domestic automakers continue to approach the last remaining "strongholds" of foreign automakers such as Volkswagen and Toyota, Western automotive brands may have "no future" in China.
The FT introduced that Picat currently serves as the Chief Operating Officer of the Asia-Pacific, Middle East, and Africa regions for Stellantis, while also overseeing the supply chain sector. He is one of the two internal candidates for the next group CEO (CEO) of Stellantis after Carlos Tavares stepped down.
According to introductions from the Stellantis website and others, Picat was first dispatched to China in 2007, serving as the head of the Wuhan factory of the Sino-French joint venture Dongfeng Peugeot Citroen Automobile (DPCA). In 2011, he was promoted to General Manager of DPCA, taking full charge of the operations of the joint venture. In 2012, he was transferred to serve as the CEO of the Peugeot brand under the PSA Group.
During his nearly five years in China, Picat was fully responsible for the operation and management of Dongfeng Peugeot Citroen Automobile Company, promoting the localization of Peugeot and Citroen brand designs and successfully developing new products adapted to the Chinese market, doubling the sales volume of Dongfeng Peugeot Citroen during this period.
As a veteran of the Chinese market with extensive experience, when asked whether Western automotive groups can compete with their domestic brands in China, Picat frankly admitted, "I am an optimistic person, but I cannot be optimistic about this."
Picat pointed out that in the Chinese market, domestic brands are expanding their offensive in all细分vehicle segments, already seizing a large share from foreign automakers in the electric vehicle and large vehicle segments. Although brands like Toyota and Volkswagen still maintain high sales in the mid-sized fuel vehicle market, he believes that the advantage of Western automakers in this "last stronghold" will not last long.
"I am very shocked," he said. "If you look at recent years, you will find that the trend is very obvious. It is quite difficult for Western automakers to maintain their position in China."
Photo of Picat
According to the FT report, Volkswagen and Toyota remain the top two manufacturers in China's fuel vehicle market, collectively accounting for 34% of the market share. However, data from Shanghai consulting firm Automobility shows that in the first two months of this year, the market share of foreign brands in China has dropped to 32%, less than half of what it was in 2020. BYD has replaced Volkswagen as the best-selling brand.
The report stated that to cope with intense competition in the Chinese market, German manufacturers like Volkswagen are doubling down on China, their main long-term profit source, adopting a "Made in China, For China" strategy to win back consumers who are switching to more affordable and technologically rich domestic brand electric vehicles. At the end of last year, Volkswagen announced an additional 2.5 billion euros investment in China.
According to Reuters, at this automotive summit, Arno Antlitz, CFO of Volkswagen, said on Tuesday that Volkswagen would "re-enter" the Chinese electric vehicle market before the third quarter of 2026, with new products launched in China expected to improve its performance in the battery electric vehicle segment.
He said, "By then, we will re-enter the market with outstanding products and a truly good cost base."
FT mentioned that on the issue of the EU imposing tariffs on Chinese electric vehicles, most European automakers like Volkswagen were firmly opposed, while companies like Stellantis and Renault took a relatively moderate stance. The latter, due to limited market presence in China, were affected less by tariffs and potential trade war escalation; among them, Stellantis' sales focus was mainly on the Americas and Europe.
It was also reported that after Stellantis gradually closed its joint ventures in China, Picat returned to oversee the company's China strategy in recent years, including a 1.5 billion euro strategic cooperation with the Chinese electric vehicle brand Leapmotor through the "Leapmotor International" joint venture to promote the export of Chinese electric vehicle technology to Europe and Southeast Asia. While leading the optimization of the supply chain, Picat deepened cooperation with Chinese suppliers such as Lingyun Group.
Last June, affected by the EU's electric vehicle tariff on China, Stellantis considered relocating part of the electric vehicle production jointly developed with Leapmotor out of China.
Notably, both China and the EU have recently resumed negotiations on the electric vehicle tariff issue. The EU and China have agreed to study setting a minimum price for electric vehicles made in China, replacing the EU's plan to impose tariffs on Chinese electric vehicles starting in 2024.
Meanwhile, Chinese automakers are flexibly adjusting their strategies in the European market, launching plug-in hybrid models in large numbers to "change lanes" and gain market share.
Data from market analysis firm Dataforce showed preliminary data indicating that in the first quarter of 2025, Chinese cars sold 148,000 units in the European market, up 78% year-on-year, with the market share jumping from 2.5% last year to 4.5%. Among them, the sales of plug-in hybrid models surged 368% year-on-year, becoming the core driver of growth.
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