🇨🇳🚘🇩🇪 China and Europe. The Chinese auto market accounts for a third of German automaker passenger vehicle sales. Due to the fierce investment in BEVs by local companies, German companies such as VW may lose not only the race to electrification, but also their market share in China and parts of their domestic market, as Chinese brands expand into Europe. As a result, analysts say a change of strategy will be required if German and other European brands will survive.
🇺🇸🚙👩⚖️ North America. The tightening material and assembly rules in the US are already moving the country away from Chinese dependency. The EV tax credit rules give US automakers an immediate but temporary advantage over competitors and make the US an unlikely target for expansion by Chinese brands. Nearly all vehicles currently eligible for tax credits are manufactured by US brands.
☕️🍺💻 However, missing tax credits do not thwart the Chinese brands' entire strategy. Setting up community spaces, bars, and cafes, as well as powerfully entering the digital space to offer direct sales, implies a possibility of branded social groups where the cost of membership is loyalty.