China’s Automotive Market Entry Strategy
China’s stronghold on the global automotive market has only been getting tighter over the last few years. Daimler’s China sales comfortably surpassed its US sales for Mercedes-Benz cars in 2018 signalling a new geographic shift in the automotive circuit. Daimler AG became the first premium carmaker to pass the milestone of 600,000 units sold in China within a year. This only adds to the brand’s market leadership in several other markets such as Germany, France, Italy, Switzerland, and Portugal.
The R&D spends have been fuelled by Foreign giants like Ford, Bosch and Volkswagen’s growing investments in China signalling the need for technology partners that can fasten time-to-market. The top 5 automotive R&D spenders in the Chinese automotive space are a mix of domestic and international players like SAIC Motors, BYD Co ltd., Robert Bosch, Great Wall Motors, and Ford Motor Company. These top 5 players account for nearly 43% of the R&D spend. Top spend segments include connected cars, ADAS & autonomous cars, hybrid & electric mobility.
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