This is how China is readying for EV domination as ICE age is nearing end
Several global auto manufacturers are looking at shrinking market share in the global and especially Chinese EV market. South China Morning Post, in one of its reports, claims that the automakers like Toyota, Volkswagen, BMW and General Motors are facing a loss of market share in the world's largest electric car market in China, where Chinese automakers and Tesla have been increasingly finding stronger footprints. The report claims that the key reason behind this is the Chinese automakers and Tesla have already planned the transition well ahead of the abovementioned automakers.
The global car brands have not adequately prepared for the transition towards electric vehicles, claims the report. It also claims that this unpreparedness may cost the automakers a major loss in terms of market share. It further states that even if the automakers like BMW, Mercedes-Benz, Volkswagen, and General Motors are beginning to move forward much more quickly with their plans for an EV future, it may be too little too late for them. Also, the report states that Japanese auto majors like Honda and Toyota are just beginning to accept electric cars as a viable option.
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Toyota, for example, is still hesitant about a complete EV transition. The Japanese auto company has been repeatedly emphasising on the need for a diverse clean powertrain technology portfolio instead of a pure EV-only lineup.
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Many of the global legacy auto manufacturers are a strong force in the Chinese auto market, which is the world's largest automotive market. Despite them being a strong force in the Chinese market for a long time, it seems to be changing in a big way, claims the report. It states that as the companies like BYD and other domestic Chinese players are coming up fast with their respective electric cars, the legacy players are facing a major market share loss.
A Greenpeace report claims that Volkswagen is facing a loss of three to seven per cent market share in China by 2030, while GM could lose up to six per cent market share. Honda and Toyota are expected to lose four per cent and three per cent market stake by the end of this decade, respectively, claims the report. The study further states that the key reason behind this loss of market share is that the legacy players have been slow to embrace electric vehicles compared to the Chinese auto companies and even Tesla.
