Chinese cars are rapidly growing their share of the domestic market and are gearing up to become key players globally, according to a recent report by a New York-based consulting firm.
The report predicts that Chinese brands will control 70% of China’s market share by 2030. On the global stage, they are expected to sell 9 million vehicles outside China by the same year, capturing 33% of the worldwide market.
Chinese cars have valuable insights that can benefit their global equivalents. Established automakers need to find ways to compete with Chinese brands, especially in the electric vehicle (EV) sector, to avoid losing out as U.S. automakers did with Japanese brands in the 1980s.
Although tariffs in regions like the Middle East and Europe present challenges, they are also driving Chinese car makers to set up local assembly operations in key markets such as Southeast Asia, Mexico, and Europe. Many Chinese companies have already made significant investments in these areas.
Yichao Zhang, a partner at the consulting firm, believes that the most successful Chinese EV makers will eventually become global brands with production facilities in the countries where they sell, similar to existing automotive giants.
The report also highlights that new energy vehicles (NEVs), including hybrid electric vehicles (HEVs), are expected to make up 45% of the global market by 2030, while demand for traditional combustion-engine vehicles will fall below 40%.