June 2024 | In a dynamic shift within the automotive industry, Chinese OEMs (Original Equipment Manufacturers) are increasingly asserting their presence on the international stage, challenging traditional market leaders. According to Markets & Industries News by Euroguss, this trend is highlighted in the latest market positioning matrix by the Center of Automotive Management (CAM). The study indicates significant sales growth and expanding global influence of Chinese car manufacturers.
The automotive industry is experiencing a transformative period marked by rapid technological advancements and intense competition. Geopolitical tensions further compound the challenge of maintaining consistent sales success. According to a study, conducted in collaboration between CAM, a telecommunications company, and automotive trade journals Automobilproduktion and AutomotiveIT, the top 30 automotive groups saw an overall sales increase of nearly ten percent from the previous year, with Chinese OEMs such as BYD, Chery and GAC achieving the highest growth rates and conquering international markets.
BYD, for example, is the first Chinese manufacturer to make it into the top 10 of the world’s highest-volume car companies – and at the same time is increasing its market share in its own country by more than ten percent.
Stefan Bratze, Director of CAM, explains to Euroguss the dual nature of market dynamics in China:
“On one hand, manufacturers benefit from the high demand and growth of the world’s largest car market. On the other hand, a globally balanced market position enhances long-term resilience.”
This strategic balancing act is crucial as automakers navigate varying regional dynamics.
Market Shifts and Market Vulnerabilities
Despite the rise of Chinese manufacturers, Toyota remains the world’s largest car manufacturer by sales volume, followed by the VW Group, which dominates in Europe but shows slower growth in China. General Motors continues to lead in the U.S., though it faces challenges in China due to a lack of competitive New Energy Vehicles (NEVs). Interestingly, Tesla has surpassed VW in vehicle sales in the U.S., reflecting the growing importance of electric vehicles in market positioning.
The concentration of German manufacturers like BMW, Mercedes-Benz, and Audi primarily in Europe and China introduces significant vulnerabilities. Notably, Mercedes-Benz saw a decline in sales in China to 737 thousand vehicles. All German premium manufacturers struggle to achieve sustainable growth in the U.S. market, where sales have stagnated over the past decade.
Regional Market Trends: China and India
While China continues to grow, it recorded the weakest growth rate in the observed period, influenced by past coronavirus impacts and semiconductor shortages. Conversely, India showcased robust growth, with an 8.2% increase in sales volume in 2023 compared to the previous year, positioning itself as a burgeoning hub for both volume and premium automotive manufacturers.
This ongoing shift in the global automotive landscape underscores the importance of strategic market positioning and the potential for emerging markets like India to play increasingly significant roles in the industry’s future.
