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Industry news
The product lacks competitiveness, and the market share of American cars in China continues to decline
2024-05-15
According to Bloomberg, industry analysts have pointed out that American automakers such as Ford and General Motors are continuously losing market share in China due to a lack of competitiveness in their products. Just recently, due to Trump imposing tariffs on Chinese made cars, Ford announced the cancellation of its plan to export new crossover cars produced in China to the United States.
According to data from the China Association of Automobile Manufacturers, the market share of American cars decreased from 12.2% a year ago to 10.7% in the first eight months of 2018. Xu Haidong, Assistant Secretary General of the Association, stated on Tuesday that the failure of American car companies such as Ford to update their product lines in a timely manner was the reason for the decline in market share.
Despite the overall decline in demand for Chinese cars, Xu Haidong pointed out that the trade friction between China and the United States has limited impact on the market. He stated at a media conference in Beijing that Chinese car buyers are not boycotting the United States.
Recently, China's automotive retail sales have been declining for three consecutive months, and the automotive market may stop expanding for nearly three decades. Among them, General Motors' sales growth in China slowed to 0.7% in the second quarter, which General Motors referred to as market "softening". Although only a small portion of cars sold in China are imported, the high tariffs imposed by China on American made cars have led to price uncertainty, causing some consumers to cancel their car purchase decisions.
According to a report from Ford, due to a decrease in demand for locally manufactured cars, Chinese car sales decreased by 36% in August. The head of the company's China region resigned in January, and since then, there have been issues such as insufficient dealer profitability and excess inventory of some cars.
Ford announced this month that it will cancel plans to export new crossover cars from China to the United States after President Trump's tariffs disrupted business practices. In July, President Trump imposed a 25% surcharge on Chinese made cars.
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