New Delhi. There was a time when goods made in China were subject to great celebrity due to their poor quality. Then came the technological revolution in China and within just 10 years, China conquered the global smartphone market. Today, from smartphones to automobiles, there is no industry where China’s dominance is not visible. But the aggressive pace and strategy of technological development in China has now become a problem for many major automobile companies around the world.

China, the largest automobile market, has created a global stir in the automotive industry. European companies such as Volkswagen, Mercedes-Benz, Aston Martin and BMW are struggling to sell their gasoline and electric cars in China. At the same time, the spread of cheap Chinese cars is increasing so much that large automobile companies like Volkswagen are having to close their factories in Germany. The prevalence of affordable electric cars is increasing worldwide.

Volkswagen cannot sell cars in China
European car companies are dying in China. European companies are no match for the cheap electric cars from Chinese companies. The situation is such that the German company, which has been doing business in China for almost four decades, is now facing collapse. More than 30% of the company’s revenue comes from China, but according to this year’s figures, sales fell 10% while the company’s profits fell 64%. For this reason, the company had to reduce production in China and will close three factories in Germany.

How a major change came about in China’s auto industry
China’s aggressive expansion policy is cited as the reason for this change in the auto industry. In fact, China’s government banks and other state-owned companies provide huge subsidies to local auto companies. This helps companies reduce costs. Because of the subsidies, the cost of Chinese cars is 30% lower, while electric cars come onto the market at prices up to 50% cheaper.

According to CAAM, an organization of automobile manufacturers in China, more than 3 million cars were manufactured last year, of which 52 lakh were exported. However, China’s exports are in the same position as the Korean company Hyundai in the 1970s.

In China, more than 50% electric cars are sold
Sales of electric cars have increased dramatically in China. The reason for this is the cheapness of cars from Chinese manufacturers. China had already prepared a strategy for switching to electric cars in 2000. Chinese companies had realized that they could not beat European, American, Korean and German companies in gasoline-diesel cars. Wan Gang, an auto engineer and later minister in China, launched a plan in 2009 to provide subsidies to electric vehicle companies. By 2022, more than 2.5 million rupees aid has been provided. Today, more than 50% of all electric vehicles worldwide are sold in China.

Electric cars in China are cheaper than petrol cars
According to Jato Dynamics’ report, China’s aggressive electric car policies result in electric car prices being up to 19% lower compared to gasoline-diesel vehicles. The share of electric vehicles in the local car market has reached 20%. There are 50 major automobile brands in Europe and 14 brands each in America and Japan. In China, however, there are 140 brands. Furthermore, their production capacity is 30% faster than that of Western car manufacturers.

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