South Korean Media: Will China Lead the Global Electric Vehicle Market?
On June 11, South Korea's *Herald Economic* published an article stating that analysts believe factors such as improved competitiveness of electric vehicles (EVs), increased overseas production capacity, and shifts in China's market share will help Chinese automakers expand their influence in global markets. This trend could lead to a reorganization of the global automotive industry landscape.
As the focus of the automotive industry shifts toward electric vehicles, Chinese companies are leading their regional competitors in both technology and sales. With the acceleration of the EV transition, this gap may further widen.
Evaluations show that traditional automakers in Europe, the United States, and Japan have experienced continuously declining profitability in recent years, facing pressure to scale down operations. Almost all companies are currently operating at a net loss, especially in the pure electric vehicle segment. There is still no clear sign that a strategy centered on electric vehicles can improve profitability.
Chinese enterprises are also expanding their overseas manufacturing bases. BYD is building factories in Europe, South America, and the Middle East; XPeng is currently negotiating the acquisition of a Volkswagen Group plant in Europe; Geely Automobile has successfully entered the European market through its controlling stakes in brands such as Volvo, Polestar, Lotus, and Smart.
The rapid decline of Western car brands' presence in the Chinese market is also considered a contributing factor. The market share of Western automotive brands in China has dropped from around 60% in 2020 to approximately 31% last year. Since China is the world’s largest automobile market—accounting for about one-third of global car sales—analysts believe poor performance in China may negatively impact global competitiveness.
Based on a comprehensive analysis of these factors, the assessment concludes that Chinese automakers are highly likely to assume a more dominant position in the global automotive market. Some countries may offer support to protect their domestic auto industries. On the other hand, nations without established automotive industries might be more inclined to choose Chinese electric vehicles over those from Europe, Japan, or the United States.
Original article: toutiao.com/article/1867702596781132/
Disclaimer: The views expressed in this article are solely those of the author.