Shulou(Shulou.com)11/24 Report--

At a time when the development of electric vehicles is accelerating, Chinese automakers are putting increasing competitive pressure on American automakers such as Ford and GM. These companies have to rethink their future in the Chinese auto market.

With the exception of Tesla, General Motors and Ford lost a lot of market share in China last year. GM's car sales in China fell 20% in 2022 compared with 2021, while Ford's sales fell 33.5% over the same period, according to market consultancy Automobility.

"the market has completely changed," Jim Farley, Ford chief executive, said at an event in Detroit on Thursday. "We will have to rethink the positioning of the Ford brand in the Chinese market."

'with electric cars increasingly becoming the focus of the industry, that's the case, 'Mr. Farley said. He says he has learned that luxury brands that sell only electric cars perform best in the Chinese market.

In 2022, the market share of Chinese electric carmakers grew by 17 per cent, while the market share of overseas carmakers fell by 11 per cent. This is partly because Chinese car companies can produce electric cars of better quality, lower prices and consumers are more willing to buy.

"it is widely believed that US carmakers have a lower and lower sense of presence in the Chinese market," said Edison Yu, an analyst at Deutsche Bank. "GM and Ford really have to be very bold and aggressive in order to succeed in the Chinese market in the transition to electric vehicles."

"to some extent, you need to make a decision to continue or quit," he said. "We are at a moment when some car companies need to make decisions about their future."

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