Every third car sold in the world in 2030, will be produced as part of the Chinese automobile industry. This is a shocking new prediction from industry experts studying China's growth curve.
Chinese cars are already presenting a significant 21% market share, but analysts expect the national industry to expand rapidly. Part of the growth in China will be at the expense of Western brands, while domestic brands will improve their share with 59 to 72 percent.
More worryingly for these Western brands, however, is that most of the additional sales will come from outside China's borders. Company AlixPartners believes that sales of Chinese automakers outside of China will increase from 3 million in 2024 to 9 million by the end of the decade.
Although they will be new 100% customs duty, introduced by the Biden administration, have limited China's ability to penetrate North America, and Japan will also be a tough nut to crack, a study predicts that by 2030 Chinese automakers will doubled their share in the European car market to 12 percent and increased their 33 percent share in the Russian market to 69 percent.
Sales on The Middle East and in Africa is expected to increase from 8 to 39 percent, and deliveries in Central and South America from 7 to 28 percent, reports CNBC.
Higher margins for Chinese automakers and their aggressive pricing strategies are well known, but analysts have identified other important advantages. Among them, the development time is half as short as that of Western car manufacturers, China maybe because of that refreshes more often its model line.
“Chinese brands place more value on features that customers can actually experience, such as cabin design and technology; they are relentlessly focused on maintaining a cost advantage even as they build factories overseas, and have built a significant lead in new technologies, including battery manufacturing,” he says Andrew Bergbaum from AlixPartners.
"These capabilities have conquered China and will eventually define the world market as well," he added.
