Posts in category: Car Review

New Delhi. There was a time when goods made in China had to face a lot of infamy due to poor quality. Then came the technological revolution in China and within just 10 years, China captured the worldwide smartphone market. Today, from smartphones to automobiles, there is no industry in which China's dominance is not visible. But the aggressive pace and strategy of technological development in China has today become a cause of trouble for many big car companies around the world.

China, the largest market for automobiles, has created a stir in the global auto industry. European companies like Volkswagen, Mercedes-Benz, Aston Martin, BMW are struggling to sell their petrol and EV cars in China. At the same time, the penetration of cheap Chinese cars is increasing so much that big automobile groups like Volkswagen are having to close their plants in Germany. The penetration of affordable EV cars is increasing across the world.

Volkswagen is unable to sell cars in China
European car companies are dying in China. European companies are no match for the cheap electric cars of Chinese companies. The situation is such that the German company which has been doing business in China for almost four decades is now on the verge of collapse. More than 30% of the company's income comes from China, but according to this year's figures, sales have decreased by 10%, while the company's profit has fallen by 64%. Due to this, on one hand the company had to reduce production in China, while on the other hand it is going to close 3 factories in Germany.

How a big change came in China's auto industry
The reason for this change in the auto industry is said to be China's aggressive expansion policy. In fact, China's government banks and other government enterprises are giving huge subsidies to local auto companies. This is helping companies in reducing costs. Due to subsidy, the cost of Chinese cars is 30% less, while electric cars are being launched at up to 50% lower prices.

According to CAAM, an organization of automobile manufacturers in China, more than 3 crore cars were manufactured last year, of which 52 lakh were exported. However, China's exports are in the same initial position as the Korean company Hyundai was in the 70s.

More than 50% electric cars are being sold in China
There has been a tremendous increase in the sales of electric cars in China. The reason for this is the cheapness of cars made by Chinese manufacturers. China had prepared a strategy to shift to electric cars in the year 2000 itself. Chinese companies had realized that they would not be able to beat European, American, Korean and German companies in petrol-diesel cars. Wan Gang, an auto engineer turned minister in China, started a plan to provide subsidies to EV companies in 2009. More than Rs 2.5 lakh crore assistance was provided by 2022. Today more than 50% of the world's EVs are sold in China.

Electric car cheaper than petrol in China
According to the report of Jato Dynamics, the effect of China's aggressive policy regarding EV is that the prices of electric cars are up to 19% lower compared to petrol-diesel vehicles. The share of electric vehicles in the car market there has reached 20%. There are 50 main car manufacturing brands in Europe, 14 brands each in America and Japan. Whereas there are 140 brands in China. Also, their production capacity is 30% faster than western car manufacturers.

Tags: auto news, Car Bike News, china india