On April 23, it was reported that as electric vehicles continue to rapidly develop, Chinese automakers are increasingly putting pressure on American automakers such as Ford and General Motors. These companies have to rethink their future in the Chinese car market.
Last year, except for Tesla, General Motors and Ford lost a lot of market share in the Chinese market. According to market consulting firm Automobility, “General Motors’ car sales in the Chinese market in 2022 decreased by 20% compared to 2021, while Ford’s sales during the same period decreased by 33.5%.”
Ford CEO Jim Farley said at an event in Detroit on Thursday, “The market has completely changed.” “We will have to rethink the positioning of the Ford brand in the Chinese market.”
Farley said that as electric vehicles become more and more the industry focus, this is indeed the case. He said that he understands that luxury brands that only sell electric vehicles perform best in the Chinese market.
“In 2022, the market share of Chinese electric vehicle manufacturers in the Chinese market increased by 17%, while the market share of overseas automakers decreased by 11%.” This is partly because Chinese car companies can produce electric vehicles with better quality, lower prices, and more desirable for consumers.
Deutsche Bank analyst Edison Yu said, “People generally believe that American automakers have less and less presence in the Chinese market.” “In the process of transitioning to electric vehicles, General Motors and Ford really need to be very bold and proactive if they want to succeed in the Chinese market.”
He said, “To some extent, it requires making a decision to either continue or withdraw.” “We are at a moment when some car companies need to make decisions about their future.”
