search.noResults

search.searching

saml.title
dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
Roaring dragon: Scania expects China to be its single largest market by the end of the decade


nomic management agency — will try and con- solidate the market, he points out. An added complication is the ‘chip crunch’


– the current imbalance between supply and demand in computer chip manufacturing — whichhas proved devastating for carmakers, as they have become increasingly reliant on digi- tal components. Chinese EV start-up Nio stopped productionfor five days at its factory in Anhui province in January due to the semicon- ductor bottleneck affecting the entire industry.


FDI versusmarket reality Kaho Yu, senior analyst at Verisk Maplecroft, says that the context for the recent govern- ment subsidies and its bid to attract invest- ments in EVs should not be forgotten either. The government is responding to falling con- sumer demand and the need for economic growth, he says. Mr Yu differentiates between FDI and the


domestic market. “There are two layers: one is the prospect for thedomesticmarket; the other is that this downward trend is actually the rea- son why the government is relaxing regula- tion,” he says. The rise in sales of automotive vehicles in


China and its booming EV market is therefore only half of the story. Car ownership in China quadrupled from59 million vehicles in 2007 to 240 million in 2018, according to a UBS Report on innovation in China. But with pandemic pressing down on consumption, it is uncertain whether this will continue.


April/May 2021 www.fDiIntelligence.com “The biggest advantage is the market size,


but whether the market is going to pick up is another question,” Mr Yu says.


Cars of tomorrow On the other hand, the past year indicates cer- tain levels of resilience. Thanks to Covid-19 stimulus measures, which saw subsidies and tax breaks extended to 2022, the Chinese auto- motive market only shrank by 1.9% in 2020, according to industry estimates. Japanese carmaker Toyota’s sales in China


rose by 11% in 2020, as it fixes its gaze on the country’s domestic market. In March 2020, it announced plans to open a $1.2bn factory to produce EVs in China’s city of Tianjin in a joint venture with FAWGroup. While new entrants are able to go into the


Chinese market on their own, joint ventures are still expected to emerge as the entry means of choice, especially as the technology and expertise required to produce the cars of tomor- rowintensifies. Andas autonomousvehicle production is the


natural next step for the the future of EVs, Mr Schaub says, problems are unlikely to arise from making the cars or car components, but rather from national security concerns over sensitive issues such as global positioning technology. “Who will process the data? Where will the


data go?” he asks. “I think [China] will be a global market, but there will be some big walls and certain thingswon’t be able to leave certain jurisdictions.”■


63


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96