Western vehicle manufacturers Risks in China, warns the owner of Jeep Stellalantis

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Western brands may not have a future in China, as local manufacturers close at the remaining strength of Volkswagen and Toyota, has warned Stellalantis.

Asked if Western automobile groups could compete with local brands in China, Maxime chopped, Stellalantis Chief of Operations for Asia-Pacific, Middle East and Africa, and one of the two internal candidates to become the following group’s CEO, said: “ I am an optimistic type, but not about it.

Local brands have taken a significant market share in China from foreign vehicle manufacturers through electric vehicles and larger vehicles segments but brands such as Toyota And Volkswagen still sells large volumes of medium -sized gasoline vehicles, known as the “C” segment.

“It struck me,” he said to the future of the FT car summit, pointing to the expanding offensive of local brands in all vehicles segments. This means that western vehicle manufacturers are left with the “C of the internal combustion engine. And this will not last,” he added.

“If we look at what has happened in recent years, the trend (of market share fall) is strong and it has been very difficult for the west (vehicle manufacturers) to maintain its position in China,” he said.

While many western companies, including Stellalantis, have gradually retired from China in the midst of fierce competition and a forceful price war, German manufacturers like Volkswagen have been reduced to a market that has been a source of benefits.

Volkswagen, Toyota and other foreign brands have adopted the “China for China” strategy to recover consumers who have moved to more affordable electric vehicles and full of homemade technology. Last year, VW announced more than € 2.5 billion in China.

The foreign brand market share in China stood at 32 percent in the first two months of this year, less than half of the 64 percent occupied by 2020. ByD has passed the Volkswagen position as the best -selling brand, according to Shanghai Automobility consultancy.

But Volkswagen and Toyota are still the two main gas makers in China with a combined market share of 34 percent.

After finishing his companies in China, Stellalantis, the owner of Peugeot, Fiat, Opel and other brands, took a 20 percent participation in Leapmotor for 1.5 million euros and is helping Chinese start -up to grow sales in China and Europe.

In an effort to point out his commitment to the Chinese market, VW has been a vocal critic of the EU anti-sub-substidis anti-UB-Substidis rates for Chinese EVs, a divisive problem that has divided the manufacturers of German manufacturers of supporters of the measures, such as Stellantis and Renault, who have little exposure to the Chinese market.

Picat has arisen next to the North -American Cape of Stellalantis, Antonio Filosa, as two internal candidates to replace Carlos Tavares, who left Stellalantis in December after disagreeing the strategy.

Asked about the plan for finding a Tavares replacement, Picat said: “The Council has begun a very complete process that is important … and they have announced the calendar so that everything is under control and this will be a good decision, whatever the decision.”