That the Chinese car market has surpassed the US to become the world’s largest is a source of immense pride for the architects of China’s car boom. That the market is dominated by foreign brands is not, write Henry Foy and Tom Mitchell.
Chinese branded cars together account for less than 40 per cent of the total market of more than 18m vehicles in China, trailing well behind market leaders such as Germany’s Volkswagen and General Motors of the US.
In the past, that gap was accepted because of rules that mean all foreign carmakers have to operate in China in a joint venture with a local player. Those rules were engineered to help Chinese companies get a foot up in the market by learning from their global partners, while both companies made money.