Global A-B segment sales, many markets are not going to survive!
The transition from pure internal combustion engine power to all-electric power is a measuring moment for the automotive industry around the world due to its impact on different product supply costs, production belts, parts manufacturers, usage patterns, and after-sales service.
A key factor in the transition to the era of electric power is the cost of batteries that cannot be significantly reduced. Despite the technological leap and the creation of products that are more efficient than the previous generation, automotive manufacturers today are targeting cars with sales prices high enough to overcome the rising costs of today's internal combustion engine vehicles, namely SUVs and luxury sedans.
Leaving small cars with price constraints is the main challenge for automakers who want to make changes to the A-B segment, especially European and American automakers who are more restrictive than those from the land of dragons. It is not wise and prudent with the plan to develop a small car that is powered entirely by electricity.
If we consider the direction of sales and market possibilities of the A-B segment, it will be found that the power of internal combustion engines still plays a key role in driving sales of this group of cars.
But considering the prevalence of pure electric power in such segments, the Chinese market has the best response as there are more than 34 small EV models to choose from, more than 18 in Europe. While the U.S. only has two models to choose from, the Chevrolet Bolt EV and Mini Electric, it underscores the cheaper cost of building EVs for Chinese automakers. After receiving support from the government, the selling price of Chinese compact cars is lower than those of the same size produced by other companies.
However, the main markets of small cars in the world population are India, South America, Eurasia. Japan and South Korea, where group car sales account for 40% or more market share. Meanwhile, the Southeast Asian market is only less than 30% and vice versa.
In addition, the price difference of A-B segment cars from China compared to conventional car brands is more than 42%, making it even more competitive in this segment. Difficult to grow Automakers from all over the world are looking for solutions to this group of cars, and it is possible to move their production bases to countries with lower costs or give up on them in the future.
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