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Chery boss says around 90 per cent of Chinese automakers lose money

Compiled by ADME Newsroom from 1 source

First reported by CarExpert · 23 October at 2:20 pm

Who's covering this — 1 article

Motoring press: 1

Image: CarExpert

The quick read

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CarExpertMotoring press23 October at 2:20 pm

Chery boss says around 90 per cent of Chinese automakers lose money

Chery’s international boss estimates around 90 per cent of Chinese automakers are losing money, and warns more companies will disappear as development costs rise.

Read at CarExpert →

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← Newsroom/Chinese brands

Chery boss says around 90 per cent of Chinese automakers lose money

Compiled by ADME Newsroom from 1 source

First reported by CarExpert · 23 October at 2:20 pm

Who's covering this — 1 article

Motoring press: 1

Image: CarExpert

The quick read

Around 90 per cent of Chinese automakers are estimated to be losing money
Chery's international boss warns that more companies will disappear as development costs rise
The warning suggests a potential shake-up in the global automotive industry
Chinese automakers' financial struggles may impact their international expansion plans

For dealers: Australian dealers should be aware of the potential instability in the Chinese automotive market as it may impact the availability and pricing of certain models

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

ADME commentary

The ADME angle

The fact that around 90 per cent of Chinese automakers are losing money has significant implications for the global automotive industry, particularly in terms of market consolidation and competition

As development costs rise, weaker Chinese automakers may struggle to keep up with research and development, potentially leading to a decline in their market share and eventual disappearance

The Impact on Market Share

The estimated 90 per cent of Chinese automakers losing money suggests that the market is due for a correction, with stronger companies potentially acquiring or merging with weaker ones to reduce costs and increase efficiency

This consolidation could lead to a more competitive market, with fewer but more robust players, which may impact the pricing and margin strategies of Australian dealers

Pricing and Margin Strategies

Australian dealers should be prepared to adapt their pricing and margin strategies in response to potential changes in the market, particularly if Chinese automakers begin to disappear or consolidate

As the market evolves, dealers may need to focus on building strong relationships with customers and providing value-added services to maintain their competitive edge

Taking Action

This week, Australian dealers can take a decisive action by reviewing their current model lineup and assessing their exposure to Chinese automakers that may be at risk of disappearing or consolidating, and considering diversifying their portfolio to mitigate potential risks

Go deeper — ADME analysis

The quick read

Full coverage

CarExpertMotoring press23 October at 2:20 pm

Chery boss says around 90 per cent of Chinese automakers lose money

Chery’s international boss estimates around 90 per cent of Chinese automakers are losing money, and warns more companies will disappear as development costs rise.

Read at CarExpert →