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I'm doubtful this will happen, based on what we've seen in the car industry in the past. Foreign car companies have had to build cars via Chinese joint ventures
by ricw 8y ago
I'm doubtful this will happen, based on what we've seen in the car industry in the past. Foreign car companies have had to build cars via Chinese joint ventures for decades, and as yet, not a single Chinese car company has seen any large success outside of China.
- foepys 8y agoThe Chinese market is large enough for them to not care about anything outside of China for now. There are various cheaply made clones of popular Western cars in China and none of them will pass any Western crash test. The advantage of those cars on the Chinese market is that they cost only a fraction of any Western car and middle-class Chinese can actually afford them.
- tachyonbeam 8y agoAFAIK, Chinese people themselves tend to prefer foreign cars, see them as higher quality status symbols.
- ryanmercer 8y agoIndeed. Some cultures in Asia are very "look at what I have", BMW and Mercedes do a lot of business over there to their equivalent of middle and upper classes.
- taobility 8y agoDifference classes have different preference. For normal families, they would prefer affordable domestic brands, and for higher classes, they would buy foreign brands, or fully imported cars. But most people would buy domestic ones which is easy to understand
- mywittyname 8y agoChinese companies don't need success outside of their domestic market to become powerhouses. American truck sales have subsidized Ford and Chevy's international divisions and, while the USDM is currently larger than the Chinese market, that won't always be the case. It's very likely that the manufacture who displaces VW as top car producer in the world will be primarily focused in the Chinese domestic market. Additionally, the sheer number of copycat vehicles available from Chinese automakers suggests that distribution of IP and technology within the industry is pretty common. Be it from sharing, theft, or reverse engineering.
- solarkraft 8y agoIt's happening, though. I think some Chinese car markers are eyeing the international market, while Geely just bought Volvo and is introducing new brands (Polestar, Lynk&Co) on its basis.
- njarboe 8y agoChina decided to change its rules on this point last April[1]. Not sure of the whole overall political reasons, but I imagine it has somewhat to do with the stronger US stance against China on trade issues with the new US president. Telsa was not going to build the plant under the previous rules and now that they are changed are going forward. [1]https://www.marketwatch.com/story/tesla-to-build-factory-in-shanghai-as-auto-makers-push-for-new-arrangements-in-china-2018-07-10 https://www.marketwatch.com/story/tesla-to-build-factory-in-...