Reuters (September 4)
“China’s automotive industry must seem like an unstoppable force to outsiders.” Nevertheless, “scores of their carmakers are heading for a crash.” They remain challenged by “a vicious price war that has lasted more than two years,” with Chinese policymakers expect an “involution” or “frantic, self-destructive struggle.” Government officials are struggling to bring the price war to an end, but their measures have not addressed overcapacity. Sales of passenger vehicles stood at 27.6 million in 2024, while “production capacity hit 55.6 million units, more than 50% higher than a decade ago.”
Tags: Automotive industry, Carmakers, China, Frantic, Government, Involution, Officials, Overcapacity, Passenger vehicles, Policymakers, Price war, Production, Self-destructive, Struggle
Bloomberg (November 27)
“As China’s assault on the world’s automotive industry gathers speed, Japan’s national champions are emerging as some of the biggest victims. In China itself, the world’s largest car market, Japanese automakers are fighting for survival as local competitors flood showrooms” with EVs. Chinese carmakers are also “pushing into Southeast Asia, rapidly gaining ground in what has long been a stronghold for legacy brands like Toyota, Honda and Mitsubishi.” We’ve transitioned from “Made in Japan to Made in China,” with Japan’s share of global passenger car production essentially halved (from 21.6% to 11.4%) over the past 25 years while China’s share has rocketed from 1.4% to 38.4% in 2023.
Tags: Automakers, Automotive industry, Car market, Carmakers, China, Competitors, EVs, Honda, Japan, Legacy brands, Mitsubishi, Southeast Asia, Stronghold, Survival, Toyota, Victims
