Reuters (April 22)
“The burning question facing China’s EV industry… is how and when it can convert explosive sales of ground-breaking vehicles into sustainable profits. The intense competition driving the sector’s innovation has also made China a market with precious few winners, foreign or domestic.” Approximately 170 domestic and automakers are competing in China, “but only 14 have a market share higher than 2%.” In 2024, excluding hybrids there were 327 EV models produced by 86 brands. Ultimately, there will be “few survivors from China’s hypercompetitive EV industry.”
Tags: Automakers, China, Competition, Domestic, EV industry, EVs, Explosive sales, Foreign, Ground-breaking, Hybrids, Hypercompetitive, Innovation, Market share, Survivors, Sustainable profits, Winners
Wall Street Journal (January 10)
“Excess capacity among carmakers in China is driving the world’s largest auto market into a shakeout phase.” According to one estimate, domestic carmakers are using just half of their capacity. “Among the early losers are foreign brands. General Motors, Volkswagen and Toyota have been bleeding market share to homegrown rivals.” That said, it seems evident that as the shakeout phase continues, “local brands face a reckoning too.”
Tags: Auto market, Bleeding, Capacity, Carmakers, China, Domestic, Excess capacity, GM, Market share, Reckoning, Rivals, Shakeout phase, Toyota, Volkswagen
Wall Street Journal (August 26)
In the “latest retreat by U.S. companies,” IBM is shuttering its R&D operations in China. “Geopolitical tensions between the U.S. and China have led many multinational companies to reassess their business in China.” IBM once viewed “China as a major growth market,” but its market share has plummeted. Revenue dropped nearly 20% last year when “Beijing pushed Chinese buyers to purchase more from domestic technology suppliers, in a campaign dubbed ‘Delete America.’”
Tags: China, Companies, Geopolitical tensions, Growth, IBM, Market share, Multinational, R&D, Reassess, Retreat, Revenue, Shuttering, Suppliers, Technology, U.S.
Automotive News Europe (June 12)
“European automakers are being challenged by an influx of lower-cost EVs from Chinese rivals,” which have surged in popularity, with their EU market share rising to 8% (from less than 1% in 2019), and potential to reach 15% in 2025. Still, Mercedes, BMW and VW all lined up against the EU’s new 38% tariff on EVs exported from China because “China is a key profit center” for the German automakers who “could face counter measures in China.”
Tags: 38% tariff, BMW, Challenged, China, Chinese rivals, Counter measures, EU, EVs, German automakers, Influx, Market share, Mercedes, Popularity, Profit center, VW
Bloomberg (April 13)
“OPEC+ group of countries, led by Saudi Arabia and Russia, finally agreed to a record cut in their oil production in response to the coronavirus-triggered collapse in demand. But the deal will come under pressure when the world becomes a more normal place again.” When demand returns, “the great battle for market share between the Americans, the Saudis and the Russians will probably restart.”
Tags: Battle, Collapse, Coronavirus, Demand, Market share, Oil production, OPEC, Pressure, Record, Russia, Saudi Arabia
Forbes (October 23)
“To foreign businesses seeking to stake out a spot in industries that will power China’s bold new future, Xi’s roadmap is far from reassuring: It entails a protectionist bent that will reduce their market share in the world’s second largest economy—an issue that risks driving a wedge between Beijing and Washington in Xi’s second five-year term, analysts warn.”
Tags: China, Economy, Foreign businesses, Future, Industries, Market share, Protectionist, Roadmap, Xi
The Economist (April 23)
With a dominant European market share, Google has come under fire from the European Commission. Google deserves to profit from its acumen, but this “has to be balanced against the need to inspire innovations that might complement Android or Google Search—or even displace them. It is now up to Google to demonstrate that its mobile strategy does not harm competition, and thus consumers.”
Tags: Android, Competition, Consumers, Dominant, Europe, European Commission, Google, Innovation, Market share, Mobile strategy, Profit, Search
Financial Times (August 11)
Fears are growing of a meltdown in the aluminum market as Chinese output soars and, much like the oil market, supply outstrips demand. “China now accounts for more than half of global supply, up from 18 per cent in 2003 thanks to cheap power and the world’s most efficiently built smelters. Established producers from North America to Russia and the Middle East—facing the lowest prices since the financial crisis, reduced margins and profits—are anxious but do not want to cut capacity for fear of losing market share.”
Tags: Aluminum, Capacity, China, Fears, Margins, Market share, Meltdown, Middle East, North America, Oil, Output, Profits, Russia, Smelters
The Economist (July 12)
“Electronics companies in Japan are starting to turn themselves around, but they are a shadow of their former selves…. After years of denial that surgery was needed, optimism is rising that Japan’s consumer-electronics firms are facing up to their steady loss of global market share.”
Tags: Consumer electronics, Denial, Electronics, Japan, Loss, Market share, Optimism, Surgery, Turn around
Institutional Investor (October Issue)
“Atsushi Saito has reinvigorated the Japanese exchange world with a merger and a technology overhaul. Now comes the hard part: winning back market share in Asia.” Following the merger of the Tokyo and Osaka exchanges, the Japan Exchange Group ranks third behind only the NYSE Euronext and Nasdaq OMX. “JPX now controls more than 90 percent of all equity-and derivatives-trading volume in Japan.” Yet, “despite its lead in listed companies, JPX trails in foreign listings. It’s also weak in terms of options, futures contracts and exchange-traded funds (ETFs), compared with the big U.S. exchanges”
Tags: Asia, Atsushi Saito, Derivatives, Equities, ETFs, Futures, IT, Japan, JPX, Market share, Merger, Nasdaq OMX, NYSE Euronext, Options, Osaka, Tokyo, Trading volume, U.S.
