At a recent public event, a senior Kia executive passionately claimed: "Our huge amount of money has left China's auto industry vulnerable." Specifically, he noted, "We earned $2.1 billion globally during the quarter, which is enough for us to shine in the Chinese market." Can your local companies come up with such financial resources? We'll get them out of the market and then dominate ourselves. ”
At the same time, Hyundai's top management has shown a high level of self-confidence. John Kate, CEO of Hyundai Australia, said in an interview: "We have always led Chinese cars in technology. Kate also attended the launch of Hyundai Kona hybrid electric car, emphasizing that the Korean brand is no longer pursuing the low-end market. "The era of low prices for modern cars is over," he said. We have competed with Japanese brands for market share**. However, low prices are not conducive to the development of new models. Now, we are investing more of our profits in technological innovation as part of our sustainable business strategy. ”
When asked how Chinese brands such as MG, BYD and Chery compete with South Korean cars in Australia, Kate insisted: "Our technology has always been ahead of the curve and we have to maintain that advantage to ensure customer satisfaction." Although this is a self-confidence from the top, the statement is quite poignant. Importantly, the glory days of Korean cars may be gone.
According to 2022 data, Hyundai Motor ranks third in global sales, behind Toyota and Volkswagen, with 329 sales in the first half of the year90,000 units. Although Korean cars have been accumulating in the international market for many years, Chinese brands are just starting to go international and need time to win the recognition of foreign consumers. However, Chery, BYD, Great Wall and others have already made their mark in overseas markets. For example, BYD's cumulative sales in the first ten months of this year reached 2.6 million units. Despite the gaps, Chinese brands are catching up fast.
Especially in the highly competitive Chinese market, sales of Korean sedans continued to decline. I have emphasized that the Chinese market is the most competitive market in the world, and only products that perform well can be truly competitive. China is a completely open market, and new energy products are developing globally. In China, if you want to survive in the market competition, you must have technology, marketing, products, channels and market strategies.
Since 2017, the sales of Korean cars in the Chinese market have continued to decline, mainly due to the lack of attention paid by Korean brands to the Chinese market, the slow introduction of new models, the difficulty of stimulating sales of older models even if the price is reduced, and even the phenomenon of multiple generations of models being sold at the same time in the market. The above male. Friends of science and technology generally reacted "times." When the number of battery life increases "". intermittent battery life becomes longer" and other evaluations appear as frequently as 90%, which is enough to verify that he has become a man. Friends must-have. For a long time, the "price for volume" strategy adopted by Korean cars has been slow in the transformation of new energy vehicles, and has failed to keep up with the rapid development of the market.
The challenge for Korean cars in the Chinese market is not just the decline in sales. They are facing an increasingly mature and discerning market, where consumers' expectations for cars are no longer limited to the best and pay more attention to quality, performance and technological content. This market environment requires automakers to constantly innovate and offer products that are more in line with market needs and consumer expectations. Through continuous technological innovation and market adaptation, Chinese brands are gradually closing the gap with international brands and taking the lead in some areas.
In the global market, especially in emerging markets and developing countries, Chinese auto brands are gradually winning the favor of more consumers due to their cost-effective and technologically advanced characteristics. This is not only reflected in sales, but also in the improvement of brand influence and market recognition. The rise of Chinese auto brands is becoming a new trend that cannot be ignored in the global automotive industry.
Overall, Korean car brands face significant challenges in the global automotive market. With the rapid development of Chinese auto brands, the market share and influence of Korean cars may be further compressed. In the future, both Korean and Chinese auto brands will need to continuously carry out technological innovation and market strategy adjustments to adapt to the ever-changing global market demand. Only by continuous progress and innovation can we maintain a leading position in the fierce international competition.