[Digital Today reporter Hyunwoo Choo (추현우)] An analysis said Chinese automakers could expand their influence in the global market based on electric vehicle competitiveness, expanded overseas production and shifts in market share in China. On May 15, EV outlet CleanTechnica said the trend could lead to a reshaping of the global auto industry.

The outlet said that as the center of the auto industry shifts to EVs, Chinese companies are ahead of competitors in other regions in technology and sales. It said the faster the EV transition, the more pronounced the gap could become.

It said established automakers in Europe, the United States and Japan have faced deteriorating profitability and pressure to scale back their businesses in recent years. It also assessed that almost all of them are in a net loss position in the EV segment. It said there is no clear sign they are moving closer to improved profitability through EV-centered strategies, with GM’s Cadillac mentioned as an exception.

Chinese companies are also expanding overseas production bases. BYD is building factories in Europe, South America and the Middle East. Xpeng was mentioned as being in talks in Europe over acquiring a Volkswagen Group plant. Geely Automobile was assessed as already having a foothold in the European market through its holdings in Volvo Cars, Polestar, Lotus, Smart and LEVC.

The analysis also cited the rapid weakening of Western brands’ position in the China market. The market share of Western auto brands in China fell from about 60 percent in 2020 to about 31 percent last year. As China is the largest market, accounting for about one-third of global auto sales, weak performance in China could also affect global competitiveness, it said.

The outlet said that, taken together, these factors make it likely that Chinese automakers will take a greater lead in the global auto market. It added that some countries could step in with support to protect their domestic auto industries. Countries without their own auto industries, it said, could choose more China-made vehicles than those made in Europe, Japan and the United States.