At this week’s Auto Shanghai, the largest global industry show of its kind, foreign firms -- in particular legacy German ones -- pitched dozens of electric, high-tech models made “in China for China“.
“There is still a huge opportunity for the German brands to make a comeback, but with each day without a truly tech-defined car (like Chinese rivals) it seems unlikely,“ EV specialist Elliot Richards told AFP.
Forty years later though, dozens of ultra-competitive homegrown car brands have blossomed.
BYD, Geely, Dongfeng and others took 65 percent of the local market in 2024, up 22.2 percent year-on-year, data from MarkLines shows.
Other European brands like Renault still manufacture some cars in China, but have withdrawn from the local market.
'Turning a big ship'
“Today it’s impossible.”
“German carmakers have invested heavily into their competitiveness in order to catch up with Chinese brands in the areas of electrification, intelligent vehicles and market responsiveness,“ European Chamber Vice President Stefan Bernhart told AFP.
Stellantis produces cars in China notably through its alliance with Leapmotor, another Chinese startup.
Even as it considers layoffs in Europe, Volkswagen has reinforced its development capacity in China, planning to release its new models in 18 months and save 40 percent of the costs.
Mercedes versus Nio
Their sales slipped last year though, as the prestige of local brands like Nio and individual models like Xiaomi's SU7 has risen.
CEO Ola Kallenius was bullish about prospects in what he called the “world’s most competitive market”.
Porsche is also betting on its cachet -- announcing this week it will concentrate on higher value sales rather than volume.
“The name of the game is value,“ said Tu Le, founder of Sino Auto Insights.
But EV specialist Richards warned against complete gloom: “Nothing is certain in the automotive space, especially in China, and everything is still up for grabs.”
Read More Details
Finally We wish PressBee provided you with enough information of ( European carmakers on China charm offensive as sales droop )
Also on site :