Chinese auto brands are looking for salvation abroad: the cooling of the domestic market is forcing them to send millions of cars for export in search of new buyers and stability. Carscoops reports this.
“China’s electric vehicle industry is increasingly focusing on overseas markets as growth in the domestic market begins to slow. BYD passed a symbolic milestone in February. It shipped about 100,600 vehicles overseas, accounting for about 53 percent of total sales for the month. For the first time, exports exceeded domestic supplies,” the publication says.
This is not an accident, but a pattern: price wars, falling margins and buyer caution have forced Chinese companies to look for new growth opportunities abroad. The situation is the same for Great Wall Motor – out of 72,600 February sales, 42,600 were exported. The domestic market, which previously absorbed the bulk of cars, can no longer cope, and manufacturers are massively reorienting themselves abroad.
Export is no longer a secondary focus for Chinese auto companies, but a key element of strategy. Last year alone, more than 2.6 million cars were shipped abroad – twice as many as the year before, reports the South China Morning Post.
Doing business inside China is becoming increasingly difficult: government subsidies are being reduced, competition is growing, and buyers have become more cautious. After prices stabilized and the rapid growth phase ended, sales slowed down. Companies accustomed to huge demand at home now need new markets.
It was previously reported that the Geely EX5 EM-i was tested in the harsh conditions of the Arctic.
