China’s carmakers are projected to claim a third of the global auto market by 2030, with most profits from overseas sales, despite trade barriers. UBS notes Europe’s EV adoption slowdown and protectionist measures as hindrances, but sees recent signs of progress.
UBS estimates that 20% of industry sales and up to 50% of earnings for some Chinese carmakers come from overseas, indicating a growing reliance on international markets amid domestic competition. The global EV market is consolidating around a few large platforms, leaving room for emerging players like India.
China’s dominance in the EV market is expected to continue due to its early investments translating into faster learning cycles and cost advantages. The EV supply chain is largely dominated by Chinese companies, impacting India’s EV supply chain as well.
To combat trade barriers, Chinese carmakers are shifting towards local production in countries like Thailand, Brazil, and Hungary. This expansion could pressure India’s domestic champions like Tata Motors amid reduced subsidies and infrastructure gaps.
Chinese brands are eyeing a deeper presence in India through joint ventures and potential manufacturing facilities. Analysts suggest that as these brands enter the market, Indian customers may embrace them, intensifying competition and market dynamics.
Competition in the global EV market is increasingly focusing on platforms and partnerships rather than individual markets, with Africa seen as the next strategic battleground for Chinese carmakers. Expanding into Africa could provide a pathway to broader markets and further growth opportunities. 1. Companies are shifting focus to relationships and strategic partnerships, not just technology and supply chain, in order to thrive in the ever-evolving business landscape.
2. This article was originally published in the South China Morning Post (SCMP), a renowned source for China and Asia news for over a century.
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Read more at Yahoo Finance: Chinese EV makers to corner one-third of global market by 2030, UBS says