Germany’s auto industry faces stiffer competition from China’s slowdown
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Slowing economic growth in China is putting further pressure on German automakers, which are facing a long-term shift in market conditions that have given them a dominant position for years.
About this informs Reuters.
“Competition on the Chinese market is the most intense in the world,” Hildegard Müller, president of the German auto lobby VDA, told reporters.
German automakers are still in contention with a slew of new model launches and technological innovations at the event.
However, according to Mueller, they must recognize that their historically strong market share in China can no longer serve as a benchmark for success.
“Chinese manufacturers will play a bigger role now and in the future,” she added, noting that patriotism plays an important role among Chinese consumers.
While there is still potential for growth in China, unlike Europe or the US, the slowdown in the world’s second-largest economy is adding to the challenges.
“China is going through an economic crisis with high unemployment and many people are having to save. This is visible in car sales, especially in the upper luxury segment,” Mueller said.
Chinese brands such as Geely, Nio have made strides in this segment at the show, introducing new cars with advanced features at lower prices than their German rivals.
We will remind:
In the labor market of China fix rising unemployment caused by seasonal factors, the war in Iran and the wider use of artificial intelligence.
