CAPTION: Management consultancy Alix Partners expects German carmakers and suppliers to continue increasing their investments in China. (picture alliance / dpa)
Management consultancy Alix Partners expects German carmakers and suppliers to continue increasing their investments in China. In five years, "the largest development teams outside the German headquarters are likely to be based there," Alix Partners director Xing Zhou wrote in a study published on Monday.
The market share of German automakers in the world's largest market has fallen from 25 percent to 17 percent over the past five years as electric mobility has taken off, he said. In their - with 40 percent of global sales - "most important single market, German manufacturers are not managing to sell their e-models (or only at a big discount)," he said. Their first models had deficits in range, connectivity, and infotainment, he added. With more than 300 models, competition in China is fierce, Alix Partners director Xing Zhou wrote.
Tesla is currently the only company in the top 10 in addition to Chinese manufacturers.
In the meantime, however, German automakers have invested heavily in catching up, he said. Doubling the market share of e-cars to 4 percent is an important first sign, he said. The technology and model cycles for electric cars are shorter and faster-moving, and the Chinese market is more dynamic, so the second start-up generation of e-cars from German manufacturers could win back market share, he said.
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