Will automobiles replace real estate and become the leading industry of the economy?
There are two diametrically opposed views on this issue.
One is that it is clearly believed that cars cannot replace real estate.
There are several reasons for this view:
First, the scale of the industry is different.
The automotive industry is a trillion-level industry, while real estate is a 10-trillion-level industry, and the volume level of the two is very different.
Of course, the size of the automotive industry is constantly expanding.
Second, the beneficiary groups are different.
Real estate itself has no special technical content, it is just something that can be copied in batches at low cost, and real estate can be played everywhere in the country.
The car is different, and the automobile industry that can play is basically a central-level city, and there are few in the country.
Another view is that cars can replace real estate.
The main reasons for this view are as follows:
One is that the audience is different.
As a global industry, automobiles are not limited to the domestic market like real estate, and can become an export capacity, which has more potential in the long run.
Second, China has a huge size advantage.
China has its own market of 1.4 billion people, and now sells more than 30 million cars a year. Plus accessories, repairs, maintenance, modifications, competitions, ......and so on, the upstream and downstream output value involved in the automotive industry is actually very huge. Not much worse than the real estate sector.
Of course, time will tell which point of view is correct.