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China, the world’s biggest market for just about everything, was a boon for Europe’s biggest car companies, especially the German ones. Many of them formed local joint ventures and made fortunes as wealthy Chinese spurned cheapo domestic brands and snapped up Volkswagens, Mercedes, BMWs and other European and American showroom delights.
As recently as 2020, foreign brands’ share of total Chinese auto sales (gasoline, diesel, hybrid and fully electric) was nearly two-thirds. Today, it’s 37 per cent – and falling. China is no longer the gift that keeps on giving. Homegrown Chinese cars, notably the electric ones, are moving up the quality and value chain fast and sending the foreign nameplates packing.
At the same time, Chinese car companies are making inroads into Europe. The European automakers can’t win. They are losing market share in China and sales and profits are slumping in their home market as Chinese electric vehicles that are affordable find buyers who can’t afford an electric Audi that costs more than a child’s university education.
For the rest of this article: https://www.theglobeandmail.com/business/commentary/article-for-european-automakers-china-goes-from-gift-to-threat/