ANALYZING THE CHINESE AUTO MARKET - AUTOLINE THIS WEEK 2020

EV Channels Review

This Autoline This Week episode, filmed at the Beijing Auto Show, features a panel of Asian automotive experts discussing the dynamic Chinese auto market in 2020. The experts highlight a slowdown in overall growth but note a significant surge in SUV demand, particularly for Chinese-branded SUVs, which now command half of the SUV market share. The discussion delves into the reasons behind the resurgence of domestic automakers, including government incentives and the growing middle class. A key trend identified is the rapid adoption of connected car technology, driven by pervasive mobile connectivity and consumer expectations. The panel also addresses the lack of consolidation among Chinese automakers, attributing it to conflicting government objectives and local economic interests. While acknowledging the challenges for smaller players, especially concerning future regulations and profitability, the experts suggest that asset-light models and partnerships with foreign firms are enabling their survival. The conversation touches upon the government's strong push for electrification, driven by industrial policy and energy security, and the critical role of license plate policies in promoting EVs. Finally, the experts discuss the evolving dealership model in China, its heavy reliance on new car sales, and the potential for disruption and consolidation, while also exploring the Chinese consumer's receptiveness to connected car technology, emphasizing convenience and comfort over traditional driving dynamics.