By 2030, Foreign Car Brand May Seize To Exist In China

Foreign car brands will disappear from China in the next four years, according to analyst Xiao Feng. The big market has become a nightmare for giants like Mercedes, Audi, and Porsche. The technological development of local manufacturers is now so fast that the Western giants are being completely pushed out of the country.

By 2025, nearly 13 million electric and hybrid cars have been sold in China, accounting for 54 percent of total car sales. Electric cars have helped Chinese brands capture nearly two-thirds of the passenger car market, the Wall Street Journal reports.

On the other hand, the figures for European brands are discouraging. Last year, Porsche lost as much as 26 percent of its sales in China in just 12 months, and Mercedes saw a 19 percent drop in the same period.

Xiao Feng of research firm CLSA thinks the race is over for most.

– It is practically impossible for them to catch up with domestic competitors in the field of electric cars.

He predicts that only a few big players like Tesla, Toyota, and Volkswagen will be able to compete in China. The rest will be non-competitive.

Cui Dongshu of the China Passenger Car Association agrees. Demand for electric cars grew by 18 percent in China last year. China’s leadership in battery technology and software gives local brands a huge advantage. The Chinese can produce cars faster and cheaper than European factories, which is why European brands are losing their position as status symbols. The Chinese simply believe they have better alternatives.

• Also See: China And The EU Agree On Measures To Settle Their Dispute Over EV Import