On November 17, 2023, the GAC Aion Hyper SSR electric sports car was displayed at the 2023 Guangzhou Auto Show held at the Pazhou Complex of the China Import and Export Fair in Guangzhou, Guangdong Province, China.
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A new report released by well-known consulting firm AlixPartners on Thursday showed that Chinese automakers are expected to continue their rapid expansion overseas and account for 33% of the global auto market share by 2030.
The market share is expected to be 21% this year, with most of the growth expected to come from outside China. Sales outside China are expected to grow from 3 million this year to 9 million in 2030, with market share growing from 3% to 13% by the end of the decade.
The rapid expansion of Chinese automakers is increasingly causing concern among traditional automakers and politicians around the world. Many worry that cheaper Chinese-made cars will flood the market, undermining the competitiveness of domestic models, especially fully electric vehicles.
AlixPartners expects Chinese brands to grow in all global markets. However, the company expects much smaller expansion in Japan and North America (including the United States), which have stricter vehicle safety standards and have announced 100% tariffs on imported Chinese electric vehicles.
“China is the new disruptor in the industry – able to create must-have vehicles that are faster to market, cheaper to purchase, advanced in technology and design, and more efficiently manufactured.” Mark Wakefieldsaid AlixPartners global co-head of its automotive and industrial practice in a statement.
In North America, Chinese automakers are expected to hold just 3% of the market, mainly in Mexico, where one in five cars is expected to be a Chinese brand by 2030. Share of Chinese Automakers Automakers are expected to grow exponentially. These regions include Central and South America, Southeast Asia, the Middle East and Africa.
According to data from AlixPartners, the market share of Chinese brands in China is also expected to grow from 59% to 72%. Traditional car manufacturers, e.g. General Motors In recent years, with the rapid rise of China’s domestic automobile industry and enterprises, these companies have lost important locations in China BYDGeely and Nioh.
Models display the Chinese automaker’s electric car BYD Song MAX at the 45th Bangkok International Motor Show 2024 in Nonthaburi, a suburb of Bangkok, Thailand, March 30, 2024.
Noor Photos | Noor Photos | Getty Images
According to data from AlixPartners, in Europe, where Chinese automakers have grown rapidly in recent years, the market share of Chinese auto brands is expected to double by 2030, from 6% to 12%.
Chinese automakers are expanding because they have cost advantages; localized production strategies that will enable local sales strategies in non-Chinese markets; and high-tech vehicles that meet consumers’ changing design and freshness preferences, the report said.
“Automakers that want to continue operating on business-as-usual principles are going to get more than just a rude awakening, they are on their way to being shut down,” Andrew Bergbaum, global co-leader of AlixPartners’ automotive and industrial practice, said in a statement. disuse.
Chinese electric vehicle manufacturers produce new products in half the time of traditional automakers (40 months vs. 20 months), mainly through design and testing to fully meet standards rather than over-engineering. They also have a 35% “Made in China” cost advantage.
Wakefield said that if traditional automakers want to compete with Chinese automakers, they need to rethink their business development processes and vehicle development pace.
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