The country’s fast growing and highly competitive auto industry should be able to create at least three automakers that would be competitive on worldwide markets, says a Chinese government official.
A senior official that works for the China Council in the Promotion of International Trade Automotive sub-council, Wang Xia, said that the local manufacturers have been hit by the incredibly rapid expansion of foreign brands and they lost domestic market share. Two years ago, Chinese brands controlled 46% of the world’s largest auto market, but today they already ceded 10% – mostly to European carmakers, GM and Ford.
The official said during the Global Automotive Forum in Wuhan, China, that the country’s auto industry is a “pillar and an umbrella” for both the Chinese and even the worldwide economies. He added that he forecasts three local companies could expand and become global players as the domestic automotive industry continues to improve and expand.
Jack Perkowski, an American investor that worked with the Chinese auto industry for 20 years concurs, saying that at least two carmakers – Geely and Great Wall – have the best chances of emerging as worldwide competitors. Although both are predicted to need several more years before selling their vehicles in Europe and North America, they could soon start expansion towards emerging markets.