Country seeking to be global leader in self-driving vehicles
Domestic automakers gearing up to compete with international auto giants
WASHINGTON, July 11, 2018 /PRNewswire/ — China is poised to emerge as a major auto exporter, shaking up the global auto market, according to a market research report published by Information Trends. The country is already the biggest global producer and buyer of automobiles.
The report, “China’s Auto Revolution,” says that during the next decade, Chinese automakers will aggressively push to sell their vehicles in international markets. In addition, there will be an upsurge of exports of vehicles from China produced by top global auto manufacturers.
“The automobile production capacity in China is growing, but the domestic market is getting saturated,” said Naqi Jaffery, the lead author of the report. This has made it imperative for automakers with plants in China to seek auto buyers in other markets. China produces a bevy of vehicles, ranging from luxury brands for the developed markets to low-cost vehicles for the developing countries.
According to the report, virtually every major global automaker has set up shop in China. These automakers are producing vehicles for both the domestic Chinese market and well as for exports to international markets. China today produces more electric vehicles than the rest of the world combined, the report said. The bulk of these vehicles so far have catered to the domestic market.
Chinese automakers are focusing on adding advanced capabilities to their vehicles to be more competitive on the global stage, the report said. China is accelerating its efforts to become a world leader in self-driving vehicles. These will be intelligent and connected vehicles that will improve transport efficiency and meet energy-saving and emission-reduction targets.
The report points out that the Chinese government has been very protective of the domestic auto industry with high tariffs on imported vehicles and limits on foreign ownership of domestic manufacturing. As it now seeks to expand internationally, the government is easing the tariffs as well as ownership requirements.
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SOURCE Information Trends