By Edward Tse, Gao Feng Advisory
China’s electric vehicle market and is now outpacing its Western counterparts.
Already the largest auto market in the world, China is now also the largest electric vehicle market.
It is also the largest car market for many global automakers, including Volkswagen, BMW, General Motors and Mercedes-Benz.
As a result, it is becoming essential for these companies to follow China’s mandate to electrify transportation.
China’s electrification plans are designed to build a globally competitive domestic set of capabilities that help establish China as the leading supplier of the raw materials and products needed to repower transportation.
For more than 30 years, China’s auto policy has required foreign original equipment manufacturers to establish joint ventures with local partners in order to access the market.
However, in the age of e-mobility, industry dynamics are being fundamentally altered.
Increasingly, Chinese companies are creating product and digital service brands that shift the focus from the hardware to the ecosystem of services that are derived from the hardware.
In this new digitally enabled business model, Chinese companies are no longer following, but rather leading, the auto/mobility revolution.