The demand for cars buying in China is going to slow down as bad news for automakers in the country. As a result, the automakers are focusing on international expansion, especially EV manufacturers such as BYD. According to a Morgan Stanley report, Chinese EV-makers who have a pillar position in China’s car market are going to capitalise on exports.
Chinese automakers gained ground over foreign competitors like Ford and GM last year, and it’s estimated that they are on track to dominate the majority share of the domestic car market this year. The demand for electric vehicles (EVs) in China remains robust, with a significant preference for Chinese-made EVs.
However, recent data shows a decline in car-buying demand in China, particularly for legacy automakers. This decline is challenging for companies like Ford and GM that are trying to salvage their market position against fierce domestic competition. The trend is attributed to various factors, including affordability, variety, and quality of Chinese EVs.
As competition intensifies, automakers, including Tesla, are slashing prices to stimulate demand. Yet, even with these efforts, weakening domestic demand poses challenges for sustaining market share.
Despite these hurdles, Chinese EV-makers are forging ahead with global expansion plans. They are venturing into international markets like Europe and are poised to become exporters of cars, shifting from their previous role as importers. This strategic move is expected to reshape the dynamics of the global automotive industry in the coming years.