At a time when the development of electric vehicles is accelerating, Chinese automakers are putting more and more competitive pressure on American automakers such as Ford and General Motors. These companies have had to rethink their future in the Chinese auto market.
In addition to Tesla, General Motors and Ford lost a lot of market share in China last year. According to data from the market consulting firm Automobility, GM’s car sales in the Chinese market in 2022 will drop by 20% compared with 2021, while Ford’s sales will drop by 33.5% in the same period.
“The market has completely changed,” Ford Chief Executive Jim Farley said at an event in Detroit on Thursday. “We’re going to have to rethink the positioning of the Ford brand in China.”
Farley said that is the case as electric vehicles increasingly become the focus of the industry. He said he has learned that luxury brands that only sell electric vehicles do best in China.
In 2022, Chinese EV makers’ share of the Chinese market will increase by 17%, while overseas automakers’ market share will decline by 11%. That’s partly because Chinese auto companies can produce better-quality, lower-priced EVs that consumers are more willing to buy.
“There is a general perception that U.S. automakers are less and less present in the Chinese market,” said Deutsche Bank analyst Edison Yu. , really had to be very bold and aggressive.”
“At some point, it’s a go-or-go decision,” he said. “We’re at a point where certain car companies need to make a decision about their future.”
