Re: BYD becomes 4th largest global car brand; Overtakes Ford & Hyundai in August 2023 Quote:
Originally Posted by SmartCat Nah, EU automotive exports to China is significant, but not life or death situation. That's because all EU brands have been arm twisted into setting up assembly/production lines in China (just like in India). And it makes no sense for China to retaliate against European automobile brands when they employ millions in China.
Buying shares in Chinese cos will not help employ people in EU. Eventually, Chinese companies will be nudged into setting up car factories in EU, to get around anti-dumping duties. That will level the playing field a bit, but Chinese EV brands will probably continue to gain global marketshare |
No, I never mentioned export figures, but overall sales figures of these cars in China over which China can easily exert control:
Here are the overall sales statistics:
Mercedes: 37% of all Mercedes sold are in China
Audi (VW part): 40%
BMW: 33.1%
VW group: 50% of all of VW sales are in China
China can easily arm-twist these companies in view of these using bogus investigations, just like they did with Qualcomm. We are not talking about general exports here. I don't think it will escalate into a full fledged trade war to involve all commodities so the overall export figures may not be relevant (that's a topic for another discussion, for example India does not love China but still has to contend with large trade deficit and so do others like US/EU. Everyone wants things cheap, even from autocratic nations).
Again, imposing tarrifs to nudge into local manufacturing is not that easy, they have agreements with the US also on tarrifs and even if they do, it is still a big victory for the Chinese, they will have market and can re-patriate the money made there to whereever they like, just like Maruti Suzuki also pays a hefty royalty to its parent in Japan every year. In any case, my original point, which is decline of market share of EU companies in EU, taken over by Chinese holds true, including the scenario you mentioned.
Last edited by OffRoadFun : 5th October 2023 at 21:11.
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