Volkswagen Group’s surprise announcement in July that it would invest in Xpeng Motors marked a shift in the relationship between Western automakers in China and their once junior Chinese partners.
When foreign companies first came to terms with a Chinese rule requiring them to form joint ventures with local companies to enter the world’s largest auto market, the relationship was one of teacher and student. However, the roles are gradually changing as Chinese companies develop cars, especially software and batteries, faster than before.
Multinational companies that need to protect huge markets in China are increasingly recognizing that they need to join forces with local players or face losing more market share than they already have, especially if they operate in a fiercely competitive market.
”It seems like there’s a shift going on in the industry where people are willing to work with competitors,” Morgan Stanley analyst Adam Jonas said on Ford’s recent earnings call.
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Post time: Jun-20-2024