Three reasons China is taking over the global car market | Forexlive

OK, I’ll admit it, my headline is a little but overblown.

But, the rise of Chinese carmakers is sending shock waves through the global auto industry.

For example:

In the U.S., General Motors said this month it was taking $5 billion in charges related to its China business
In Germany, Volkswagen is threatening to close factories and cut tens of thousands of employees … One of the underlying causes is the hit to VW’s profits from lost market share in China.

The Journal article points to three China developments behind the moves:

1. Over half of new cars sold in China today are either fully electric vehicles or plug-in hybrids

2. Three in five Chinese buyers are choosing a domestic brand, the highest ratio since the country emerged as the world’s largest car market.

3. China’s passenger-car exports quintupled between 2020 and 2023, hitting 4.1 million vehicles last year, according to industry data.

Things are only going to get worse for non-Chinese vehicle brands, before they get … worse still.