Shulou(Shulou.com)11/24 Report--

CTOnews.com, July 28 (Reuters)-in recent days, some of the world's largest carmakers have issued announcements that they are taking a very different path: general Motors and some German brands are betting on new electric vehicles in the face of changes in the Chinese market, while Toyota and others are turning to cost-cutting.

Chinese car brands accounted for 53 per cent of the market in the first half of 2023, making them the world's largest car market leader for the first time, according to ▲ Touyuan Pexels China Association of Automobile Manufacturers (CAAM).

For years, overseas car giants and Chinese state-owned partners have dominated the market, but progress has been slow to shift to the fast-growing electric vehicle market. This slowness has come at a high price for overseas car companies. Tesla was the only overseas brand that performed well in the first half of the year, surpassing BMW in popularity in the Chinese market, and its largest factory is also in China, according to CAAM.

On the other hand, the brutal price war has also put more pressure on manufacturers' profit margins in the Chinese market. Some carmakers are cutting production and layoffs, including Toyota and Mitsubishi. The head of a Shanghai-based consulting firm said manufacturers had no choice but to double their prices, including Volkswagen and General Motors.

Volkswagen has been outsold by BYD since the end of 2022. CTOnews.com has previously reported that it recently announced two agreements aimed at strengthening its position in China: to work with Chinese company Xiaopeng to start producing two new models with Xiaopeng software from 2026, and to jointly develop new Audi models and a new platform with Chinese partner SAIC.

GM's sales in china fell 9% in the first half of the year, including Buick, Chevrolet and Cadillac. The company has been hoping that the electric car developed on its Ultium platform will turn things around. GM has sold more than 12000 Ultium-based electric vehicles since its first Ultium model, the Cadillac Lyriq, went on sale last year, and last month the price of the Lyriq in China was cut by 14%.

"We have to launch the right electric cars at the right price and the right technology [in China]," GM CEO Mary Barra told investors on a recent conference call.

Yang Honghai, chief operating officer of Kia China, said at an industry forum in June: "We will let the enemy fight first, and then we will come back with rich money and technology to take them away." we didn't give up the market, we just chose to come back at a more appropriate time. " Kia will import its first electric car, the EV6, in the Chinese market in August, he said.

Also don't give up on BMW. Mercedes-Benz, BMW and Volkswagen's Audi had roughly the same market share in China in the first half of the year, after these brands offered more than 25 per cent dealer discounts in some cases, according to the data. BMW had previously announced increased investment in product research and development in China and established a new research and development center in Shanghai to develop electric vehicles to be sold in the global market.

At the same time, some people are retreating. Mitsubishi Motors closed a plant with a joint venture partner to produce Olander SUV, and the two companies tried to negotiate a restructuring after a sharp drop in sales. Toyota also slowed production at a Chinese joint venture plant and laid off about 1000 contract workers.

Nissan will bring four new models to the Chinese market, including electric cars, but the company also said this week that it would consider exporting cars from China to other regions to take advantage of the country's cost advantage. Tesla, BMW, Ford and Renault are also considering or have adopted this strategy.

"China is not only a place to sell cars, but also a place to promote economies of scale," said an auto analyst in Shanghai. China can reduce your costs and improve your international competitiveness. "

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