Bloomberg reported on August 6 that the key to competition in the automotive industry in the future is not just the Chinese and European markets, but the choices of the “next billion drivers” in regions such as India, Latin America, Southeast Asia, the Middle East, and North Africa. The article argues that Chinese automakers have already made preparations in advance, while their European counterparts are clearly lagging behind in this round of competition.
The article indicates that among the approximately 4 billion people in the global middle class, developed countries and China account for less than half. Future growth in automotive demand will mainly come from emerging markets. Chinese brands such as BYD, Geely, and SAIC MG are entering these markets with their price advantages and electric technology.
In contrast, European car manufacturers, despite having advantages with established brands like Mercedes-Benz, BMW, and Volkswagen, are slow in exporting new energy vehicles.
European companies are worried that leveraging China's manufacturing capabilities could weaken their domestic industries. At the same time, they find it difficult to provide electric vehicle products at the same speed and at the same price as Chinese automakers.
The article cites examples where only a few European car manufacturers, such as Audi and BMW's Mini, and Mercedes-Benz's Smart, have successfully turned their Chinese factories into export bases. Volkswagen has recently begun to use its Chinese operations as export centers for global markets, but its overall transformation still lags behind that of its Chinese competitors.
The report also argues that European automakers currently focus too much on how to deal with Chinese brands entering the European market, while ignoring a larger challenge: Chinese automakers are competing for global future consumers, and the battlefield of this competition may not be in Europe.
