Part 5/7:

The anticipated consolidation within the automotive sector, driven by fierce competition and aggressive pricing strategies, may further enhance B’s competitive edge. The company’s vertically integrated model, producing around 70% of its components in-house, sets it apart from rivals, allowing for greater versatility and cost management.

The State of the Chinese Automotive Industry

The environment within the Chinese automotive market is described as increasingly cutthroat. A fierce price war has led to bankruptcies among several manufacturers, including notable names like Mitsubishi and Jeep. Evans mentioned this ‘bloodbath’ climate, showcasing the ruthless competition forcing suppliers to drastically undercut their prices, risking their sustainability.