GM - Power Shift Part 2: Western Brands In China's EV Market
2024-06-26 13:12:42 ET
Summary
- The Chinese market is increasingly dominated by domestic brands in the electric vehicle (EV) sector, posing a threat to Western manufacturers.
- This article provides an updated analysis of the EV market in China and the rest of the world, focusing on recent developments and trends.
- I intend to write a series of articles covering the future cost developments of EV versus internal combustion engine cars and analyzing various car manufacturers in the industry.
Introduction
This article is about the rapidly changing market, the growth of Chinese companies, and the challenges faced by Western manufacturers. Toward the end of the article, I discuss two different ETFs, Global X Autonomous & Electric Vehicles ETF ( DRIV ) & KraneShares Electric Vehicles and Future Mobility Index ETF ( KARS ), as well as other general ideas that will hopefully help you in your future decisions regarding your own trading with car manufacturers.
Why part 2?
I wrote an article titled " Power Shift: China's EV Market, Impact On Western Brands, And Some Trading Ideas " almost one year ago. In my opinion, this is one of my best articles to date and contains essential information for anyone interested in car manufacturer shares. Why?
In recent decades, the Chinese market has been a significant part of the sales figures of Western car manufacturers, with up to 40% of sales going to China alone. For most manufacturers, the percentage was double-digit. However, this market is increasingly threatening to collapse, signaling a dangerous development for Western brands:
- the trend is that more and more electric cars are being sold in China. At the same time, Chinese companies have overwhelming market shares in the EV market. If these two trends continue, almost all non-Chinese brands could lose up to 40% of their previous total sales figures...
Power Shift Part 2: Western Brands In China's EV Market