Chinese-made cars are expected to dominate 33% of the global car market by 2030. According to a study by research firm AlixPartners, reported by Carscoops on Saturday (June 29, 2024), this significant increase will see China’s market share rise from 21% to 31% by 2030.
The same study by AlixPartners states that one in every three cars sold worldwide in 2030 will be made by Chinese car manufacturers. Chinese cars are predicted to capture a 12% market share in the European automotive market. Domestically, China will dominate with a 72% market share.
“Faster development times and lower production costs give Chinese brands an advantage over automakers from other countries,” says AlixPartners.
Currently, Chinese cars hold a 21% market share. Analysts predict that the industry in China will grow rapidly. Part of this growth will occur in China, at the expense of Western brands, with domestic brands increasing their market share from 59% to 72%.
More concerning for Western brands is that a significant portion of the additional sales will come from outside China. AlixPartners expects sales of Chinese car manufacturers outside China to surge from 3 million in 2024 to 9 million by the end of this decade.
Various regions around the world are indeed working hard to curb the growth of Chinese cars. The European Union has increased tariff policies to limit the penetration of Chinese cars in their region.
However, this move has been softened due to opposition from European automotive companies, as the EU’s actions would harm them when entering the Chinese market.
The United States has also adopted a similar policy. US President Joe Biden introduced a new 100% tariff to limit the ability of Chinese cars to enter the United States.
China, however, is not worried about these efforts. AlixPartners says China will maximize car sales contributions in other regions. Russia is expected to be a major contributor, with Chinese car sales in Vladimir Putin’s country predicted to increase by 69%.
Additionally, China will seek to increase sales in the Middle East and Africa. In Africa, Chinese car sales are expected to rise from 8% to 39%. In South America, sales are predicted to grow from 7% to 28%.
This ambition is feasible as Chinese cars are currently experiencing improvements in quality and technology, with prices significantly more affordable compared to cars from other countries.
“Chinese brands place a higher value on features that customers can really feel, such as interior design and technology. They are focused on maintaining their cost advantage,” said AlixPartners analyst Andrew Bergbaum.
“These capabilities have captivated China and will ultimately define the global market,” he concluded.
