LONDON, Sept 06 (Alliance News):Foreign automakers, long dominant in China’s lucrative car market, are facing an unprecedented shift as homegrown electric vehicle (EV) manufacturers rise to prominence.
Chinese companies like BYD and Xpeng have rapidly gained ground, transforming the world’s largest passenger car market and challenging global giants like Volkswagen, Ford, and General Motors.
Volkswagen, the world’s second-largest automaker, is feeling the pressure. On Monday, the company warned that it might have to close plants in Germany for the first time in its history to reduce costs.
The company has seen a sharp decline in deliveries in China, its largest market, with sales dropping by over a quarter compared to three years ago. This year, Volkswagen lost its crown as China’s top-selling car brand to BYD, marking a significant shift in the market.
Other foreign automakers, including Ford and General Motors, are also seeing their sales and market share erode. In July, foreign brands accounted for only 33% of auto sales in China, down from 53% two years earlier, according to the China Passenger Car Association (CPCA).
The rise of Chinese EV manufacturers, coupled with changing consumer preferences, is reshaping the global auto industry, leaving traditional automakers struggling to maintain relevance in the rapidly evolving market.
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