Country Automakers Gearing Up to Compete with International Auto Giants
Falls Church, VA – July 11, 2018: China is poised to emerge as a major auto exporter, shaking up the global auto market, according to a market research report published by Information Trends. The country is already the biggest global producer and buyer of automobiles.
The report, “China’s Auto Revolution,” says that during the next decade, Chinese automakers will aggressively push to sell their vehicles in the international markets. In addition, there will be an upsurge of exports from China of vehicles produced top global auto manufacturers.
“The automobile production capacity in China is growing, but the domestic market is getting saturated,” said Naqi Jaffery, the lead author of the report. This has made it imperative for Chinese automakers to seek auto buyers in other markets. China produces a bevy of vehicles, ranging from luxury brands for developed markets to low-cost vehicles for the developing countries.
According to the report, virtually every major global automaker has set up shop in China. These automakers are producing vehicles for both the domestic Chinese market and well as for exports to the international markets.
The report points out that the Chinese government has been very protective of the domestic auto industry with high tariffs on imported vehicles, and ownership limit on foreign ownership of domestic manufacturing. As it now seeks to expand internationally, the government is easing the tariffs and ownership requirements.
China today produces and more electric vehicles than the rest of the world combined, the report said. Almost all these vehicles so far have catered to the local market. In addition, Chinese automakers are focusing on adding advanced capabilities to their vehicles to become more competitive on the global stage.
China is accelerating its efforts to be a world leader in self-driving vehicles. These will be intelligent and connected vehicles that will improve transport efficiency while meeting energy-saving and emission-reduction targets.