Four brands to dominate in China’s automotive oligopoly
Great Wall Motor, Geely, SAIC Motor and Guangzhou Auto will dominate among China’s carmakers in years to come, analysts say.
The automotive industry in China, where more vehicles are sold every year than anywhere else on earth, is developing toward an oligopoly dominated by four manufacturers with their own brands, analysts said.
Chinese customers, buoyed financially by three decades of economic growth and spoiled by the flood of top marques into the market, are accustomed to expecting higher quality from their vehicles, which marks the end of the “low-price, high-volume” business model for carmakers, said Guotai Junan Securities’ analysts Wang Yanxue, Zhang Shuli and Xu Weidong.
“The market share of four domestic car makers will surge from the current 45 per cent to 60 per cent or above, with both prices and volume rising together,” they said.