Over the years, car brands have seen huge opportunities in the world’s largest market. If the first times were promising and however some agreements such as the obligation to cooperate with a local actor to set up factories, everyone seemed to get their account. So we have seen the emergence of models specific to this market. Everything was fine in the best of worlds and then things got really complicated with the COVID pandemic.
Due to its high hygiene measures, factories were closed for very long weeks causing a significant loss of income for foreign products established on the site but also a significant delay in the production of structures built on the site and then sold in Europe, such as DS9 or of Citroen C5 X. And talk Stellantis in fact, it was last October that the group announced the closure of its joint venture with GAC and the cessation of production Jeep within the country.
However, with more than 26 million cars sold last year, the Chinese market has something to whet the appetite of European companies, but today their market share continues to decline. So, from 60% two years ago, it has dropped to 43%. Beyond the domestic context, this spectacular decline is mostly explained by a change in mindset among consumers and Chinese leaders.
Knowing that they will not be able to get heat, manufacturers have invested heavily in electricity and it works. With the heavy blow of government subsidies to producers, but also to customers, sales have increased and we have seen the appearance on the national and international scene of products such as BYDGeely, MG or Aiways with great expectations as we saw during the last Paris World Cup.
Chinese enthusiasm for electric vehicles is greater than the government’s expectations. This year, more than a third of the cars sold should be electric, while they represented only 15% of sales in 2021. China has clearly succeeded in its electrification transition. Let’s just hope that the prey of the Europeans, the Chinese will not be the last hunter.