Korean cars have finally paid the price after being bombarded in the mainland market, and the risk of delisting has been lifted?
Beijing Hyundai and Kia have both experienced a difficult period in the mainland, which can be said to be difficult.
At its peak, it had five production bases in mainland China, with an annual production capacity of 1.65 million units. However, in the past year, these factories have been sold at a 50% discount, and no one wants them at all. The company's top brass has been under fire on Chinese cars in the mainland market and has been damaging its own brand, ultimately leading to huge losses — losing money every year and now declaring bankruptcy.
Eventually, both companies are in danger of being taken off the shelves.
However, in 2023, both Korean manufacturers finally showed signs of improvement, and sales also increased significantly. Many analysts believe that once they seize the opportunity to switch to electric vehicles, the danger of withdrawal will pass briefly and their position in China will be reversed.
Really? But the author does not think so.
Sales of Korean cars in China are declining, and it's not just because of their battery electric vehicles. Since 2017, sales of Korean cars have been declining, and this has nothing to do with the THAAD incident. Since then, many consumers have become skeptical of Korean cars, and Hyundai has suffered even more. Since then, Korean cars have been declining, which was already dangerous, and now it is even worse.
Korean cars used to have an advantage in the market, mainly because of its ** advantages. However, since the rise of domestic car brands, Korean cars have not been so competitive. In terms of **, compared with Chinese cars, there is no advantage. Therefore, with the rise of domestic car brands, the popularity of Korean cars has gradually decreased.
In addition, these car companies have also been affected by new energy vehicles, they have not had time to make corresponding changes, and when they realize this, it is already a step too late, such as the domestic Tesla, which has occupied the vast majority of the market.
Therefore, for various reasons, Korean car companies have to rely on pure electrification to reverse the situation, and I am afraid there is really no way. However, don't underestimate the power of South Korean automakers, and although their business in China has been hit hard, that doesn't mean they can't gain a foothold in China.
Anyway, their sales around the world are not bad, and that's their capital. Moreover, they will not easily give up the Chinese market, and even then, they have not announced their departure. At the same time, we should also see that in the context of the good development of new energy vehicles, they are eyeing the Chinese market, which fully shows that they should have a foundation in China. Despite these countries"Crisis"There will be temporary**, but the situation must not be ignored.
In fact, whether they are actively involved or not, the U.S. strategy for local production of electric vehicles will, in a sense, win more with partners. Moreover, this can also make domestic car companies feel a certain sense of oppression, under this huge pressure, the price of domestic car companies, has not all increased, which is beneficial to us ordinary consumers.
What do you think about this? Please comment, like and share on this topic!