ChangingContextofChina’sAutomotiveSectorRequiresRe-examinationofStrategyforBusinesses
ByLuZhang,CharlsonTang,RachelHuandMelodyMao
September
ArecentGaoFengAdvisoryViewpointco-authoredbyProjectManagerLuZhang,SeniorConsultantsCharlsonTang,RachelHuandMelodyMao.
EvolvingSalesandSegmentDynamicsintheWorld’sLargestCurrentStateoftheAutomotiveMarket
China’sautomotiveindustrycontinuestoundergofastandmajorchanges.Thoughstillbelowthepre-pandemiclevelsduemainlytoashortageofsemiconductorchips,automotivesalesinChinarose25.6percentyear-on-yeartoover12.89millionunitsinthefirsthalfof,makingitthelargestautomotivemarketintheworldfor12consecutiveyears(seeExhibit1).TheimpactofthechipsshortageonChina’sautomotiveproductionisexpectedtopersistthroughoutand.
Exhibit1
China’sTotalAutomotiveSales(-,H1;byNumberofVehicles)
Source:ChinaAssociationofAutomobileManufacturers
Giventhecontinuedpolicysupportbythegovernment,newenergyvehicles(NEVs)continuetogrowattheexpenseofvehicleswithinternal