Chinese Automakers' Rising Global Influence by 2030

TapTechNews June 30th news, according to industry experts' prediction, by 2030, one out of every three cars sold globally will come from a Chinese automaker.

Chinese cars currently account for 21% of the global market share, and analysts expect the Chinese auto industry to expand rapidly. Part of the growth will come from the Chinese market itself, replacing some Western brands, and the market share of Chinese brands in the domestic market will rise from 59% to 72%.

However, for Western automotive brands, what is more worrying is the rapid expansion of Chinese automotive brands in overseas markets. Consulting firm AlixPartners believes that by the end of 2030, the overseas sales of Chinese automakers will surge from 3 million units in 2024 to 9 million units.

Although the new tariff policy implemented by the Biden administration will limit the entry of Chinese cars into the North American market, and the Japanese market will also be difficult to break into, the study predicts that by 2030, the market share of Chinese automakers in the European automotive market will double to 12%, and the market share in the Russian market will increase from 33% to 69%. The sales in the Middle East and Africa are expected to increase from 8% to 39%, and the deliveries in Central and South America may increase from 7% to 28%.

Chinese automakers are known for their aggressive pricing strategy, but analysts also point out other important advantages. TapTechNews noted that these advantages include that the R & D cycle of Chinese cars is only half that of Western automakers, so they can update models more frequently.

Chinese brands focus more on the functions that customers can actually experience, such as design and in-car technology; they are ruthlessly committed to maintaining a cost advantage even when building factories overseas; and have already established a considerable lead in emerging technologies (including battery production) that China is leading, said Andrew Bergbaum of AlixPartners. These capabilities not only capture Chinese consumers but will ultimately define the global market.