Western car makers risk the risks in China, the owner of Stelantis warns

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Western brands may not have a future in China, where local auto makers have been closed in the last remaining strongholds kept by the likes of Volkswagen and Toyota, Stelncis warned.

In response to a question about whether Western auto groups will be able to compete with local brands in China, Maxim Beckat, the chief operating officer in Stelantis in the Asia Pacific region, the Middle East and Africa, and one of the internal candidates to become the CEO of the following group: “I am a man who is completely optimistic, but not on that.”

Local brands have a large share in the market in China from foreign car makers via electric cars and large vehicle sectors, but brands like Toyota Volkswagen still sells large quantities of medium -sized gasoline compounds, known as “Section C”.

“I was shocked,” said Picks in the future of the car summit in FT, noting that the domestic brand expansion attack in all vehicle sectors. This means that Western car makers leave the “C-SEGMENT internal combustion engine.” This will not last. “

He said: “If you look at what happened in recent years, the direction of (the market share) is strong and it was very difficult for Westerners (car makers) to maintain their position in China.”

While many Western companies, including Stelantis, gradually declined from China with fierce competition and bruising warfare, German manufacturers such as Volkswagen in a long -time market were a source of profit.

Volkswagen, Toyota and other foreign brands have adopted a strategy “in China for China” to restore consumers who have turned into the most expensive electric cars full of technology from local brands. Last year, VW announced an additional investment of 2.5 billion euros in China.

The share of the foreign trademark market in China was 32 percent in the first two months of this year, less than half of the 64 percent they occupied in 2020.

But Volkswagen and Toyota are still the best gasoline vehicles in China with a combined market share of 34 percent.

After the end of its projects in China, Stelantis-owner PEUGEOT, FIAL, Opel and other brands-a 20 percent share in Leapmotor for 1.5 billion euros, and helps Chinese sales in the development of sales in China and Europe.

In an attempt to refer to its commitment to the Chinese market, Volkswagen was an audio critic of the European Union’s definitions of rhetorical on the Chinese EV imports-a divisive issue that had divided German car makers from supporters of measures, such as Stellantis and Renault, which offer a little exposure to the Chinese market.

Picat appeared alongside the President of North America at Stelantis Antonio Filosa as internal candidates to replace Carlos Tavares, who left Stelantis in December after strategic disputes.

In response to a question about the plan to find an alternative to Tavares, Picat said: “The council started a very comprehensive operation … and they announced the timing until everything is under control and it will be a good decision, whatever the decision.”