The Chinese automotive industry is likely to enter a financial squeeze cycle of overcapacity, lack of demand, the kind that the construction industry is experiencing, but there are differences between the two sectors. Cars can be sold faster, brand and product strategy can change easily, but it is not easy to demolish a building and build another one. In car production, it is possible to move from one model to another.

Also, the Chinese government sees electric vehicles as strategic to gain technology leadership. The construction sector was a sector that managed domestic demand and did not offer a chance to compete. Perhaps the vehicles produced may lack competition for now, but if EVsEV’s become widespread in the future, China will get its share.

The Chinese automotive industry is likely to enter a financial squeeze cycle of overcapacity, lack of demand, the kind that the construction industry is experiencing, but there are differences between the two sectors. Cars can be sold faster, brand and product strategy can change easily, but it is not easy to demolish a building and build another one. In car production, it is possible to move from one model to another.

Also, the Chinese government sees electric vehicles as strategic to gain technology leadership. The construction sector was a sector that managed domestic demand and did not offer a chance to compete. Perhaps the vehicles produced may lack competition for now, but if EVs become widespread in the future, China will get its share.