by Bill Russo
In my recent article China's Next Revolution: Transforming the Global Automotive Industry I brought forth the argument that some have found controversial: that China is the catalyst behind the restructuring of the global automotive industry. Some believe the automotive industry is undergoing change because of the global economic crisis, which has little to do with China. Still others believe that the restructuring is a result of mismanagement and that major OEMs can be restored to greatness with a change to new leadership possessing sufficient vision to adopt a new course.
However, I believe we are witnessing the early stages of an economic revolution: a shift of the global center of gravity of economic strength towards the east which will result in profound changes in numerous industries. As an economic bellwether, the automotive industry captures a great deal of interest. However, it is apparent that there are many who still do not comprehend that the changes are in fact fundamental and irreversible.
It is apparent that more explanation is needed for many to grasp the fact that China is the catalyst for this automotive revolution, and that the opportunity exists for China and its fledgling automotive companies to assume a leadership role in the 21st century automotive industry. This explanation will be offered by highlighting eight overarching trends which are shaping the China automotive industry: now the largest in the world and the new battleground for domination of the global auto industry.
Eight Overarching China Automotive Trends:
- Policy-driven Consolidation of Chinese Vehicle Manufacturers
- Global Redistribution of Assets by Non-Chinese Companies to Capture China Market Growth
- Acquisition of Foreign Assets and Key Development Competencies by Chinese Companies
- China's Investment in New Energy Vehicles and Associated Infrastructure
- Utilization of China's Automotive Capacities for Global Expansion
- Hyper-Competition Across the China Automotive Market Segments
- China Vehicle Manufacturer's Push to Build Brand Equity
- China's Rapidly Changing Demographics and Growing Demand in Lower Tier Cities
Click here to view article published in GLG News
Click here to view article published in GlobalAutoIndustry.com
Click here to view article published in Gasgoo.com China Automotive News
Click below to view: