SINGAPORE, Feb. 27, 2019
Joint ventures between Chinese OEMs and leading global OEMs improve cost efficiencies and lower entry barriers
SINGAPORE, Feb. 27, 2019 /PRNewswire/ -- The Chinese Government's Belt and Road Initiative, which resulted in the Railway Express that links the country, has thrown open huge global export trade opportunities. Passenger vehicle (PV) manufacturers are looking to expand beyond Asia and make deeper inroads into the Americas and European markets, especially with the production of electric vehicles (EVs). They will also target high-value PV markets in West Asia, South Asia, and South America, as the majority of the countries in these regions do have automotive production capability.
"The most preferred Chinese PVs in export countries are SUVs due to their higher cost-performance ratio and perceived value," said Lily Zhou, Research Analyst, Mobility.
"Chinese PV original equipment manufacturers (OEMs) are also expected to strengthen their joint venture relationships with key international leading OEMs to expand their portfolios of advanced technologies," she explained.
SAIC, Chery, JAC, Dongfeng, Great Wall, and Chang'an together controlled 67.3 percent of export market in 2017. Going forward, SAIC is likely to enhance its export market attractiveness through joint ventures to gain brand production benefits. Similarly, Chery's focus on the European market, and the joint venture between JAC and Volkswagen are likely to increase their competitiveness.
Frost & Sullivan's recent analysis, Chinese Passenger Vehicle OEMs' Global Expansion Strategies, Forecast to 2025, examines the export strategies of key Chinese PV OEMs and analyzes the evolution of the Chinese PV export market and its changing competitive landscape. It discusses Chinese PV OEM global dynamics, and provides a PV OEM comparative analysis, overview of success factors, forecasts and trends, and growth opportunities. Lastly, it presents conclusions and a future outlook.
For further information on this analysis, please visit: http://frost.ly/38a
"Value for money is another important competitive factor to break into export regions; however, the appreciation of Chinese Yuan has lowered the price advantage of Chinese PV exports to some extent," noted Zhou.
"Still, Chinese OEMs can adopt alternate business practices to retain this advantage; for instance, production localization in the export countries can help achieve higher cost competitiveness," she added.
In addition to M&A and product development, successful OEMs have to make the most of the growth opportunities offered by:
Chinese Passenger Vehicle OEMs' Global Expansion Strategies, Forecast to 2025 is part of Frost & Sullivan's global Automotive & Transportation Growth Partnership Service program.
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Chinese Passenger Vehicle OEMs' Global Expansion Strategies, Forecast to 2025
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