New tariffs on Chinese electric cars aren’t enough to help foreign automakers stay competitive, especially in the lucrative China market, according to consulting firm AlixPartners.
China is the world’s largest auto market. It’s taken the global lead in the development of new energy vehicles, which include battery-only and hybrid-powered cars.
The NEV category now accounts for more than 40% of new passenger cars sold in China — and domestic automakers are mostly leading sales, with foreign companies lagging behind.
A lot of foreign car companies still haven’t figured out how their products can stand out in China’s EV market, Stephen Dyer, co-leader and head of AlixPartners’ Asia automotive practice, said during an annual industry outlook event on Wednesday.
“Unless [foreign car brands] change their mindset of developing and manufacturing cars to one that is more willing to take risks, and consider how to design and manufacture a car from the so-called principles, their position will become increasingly precarious,” Dyer said in Mandarin, translated by CNBC.
