Chinese automotive suppliers speed up localisation to increase global market share
International carmakers’ orders from Chinese vendors are an endorsement of the quality and competitiveness of their products, analyst says
As leading players like BYD secure mega deals with major carmakers like Ford, Chinese automotive suppliers that once trailed their global peers are now stamping their authority on the EV sector.
Chinese vendors were enjoying an overwhelming advantage over their international rivals in terms of production and technology, but they might not be able to increase their global market share unless they localise research and development in markets like Europe, according to Denis Depoux, a global managing director at Roland Berger, a global consultancy.
“You cannot design products in Shenzhen for markets in Europe,” he said. “Product superiority will not be achieved in Europe without local integration.”
He added that Chinese companies must act fast and set up local manufacturing bases through joint ventures to gain acceptance and become key suppliers for European EV makers.