Rise of China’s auto sector threatens European automakers
Amid drastic changes in the global auto sector, Russian President Vladimir Putin’s top economic advisor Maxim Oreshkin has expressed concern about the future of European automakers. In an interview with Expert magazine, Oreshkin pointed out that China’s dominance in the auto industry is increasing and that this development could pose a threat to established European brands such as Mercedes and BMW.
The rise of China’s automobiles
China has recently emerged as one of the world’s leading car exporters, with more than 1 million cars sold in the first quarter alone. As a result, China overtook Japan, and the country’s automobile exports continued to grow, with volumes increasing significantly year-on-year. Oreshkin suggested that European brands could eventually follow Volvo’s path. Chinese companiesand cease to be essentially European.
Impact of the European crisis and sanctions
The European Union, especially Germany, is facing an economic crisis, made worse by post-war sanctions on Russia. ukraine conflict. The sanctions led to the loss of cheap Russian energy, which had historically been a key support for European industry. Hildegard Müller, president of the German Automobile Industry Association, also expressed concern that rising energy costs are reducing Germany’s international competitiveness in the automotive sector.
China’s advantage in the Russian market
Additionally, sanctions against European, US, South Korean and Japanese automakers will make China the largest supplier of cars to Russia in 2023, with Chinese brands accounting for 92% of Russian car imports. A notable player in this change is BYD Auto Co Ltd, a Chinese multinational and the world’s largest manufacturer of plug-in electric vehicles. BYD Auto, known for its extensive vertical integration and production of battery electric vehicles and plug-in hybrid electric vehicles, has experienced significant sales growth since 2020 due to an expanding market share of new energy vehicles in China.
This shift in the dynamics of the auto industry, highlighted by the rise of China and the challenges faced by European manufacturers, marks an important turning point in the global auto sector. There is no doubt that these developments will have a long-term impact on the industry landscape in the coming years.