2 days Ago By Steve Hanley
The 2024 Global Automotive Outlook from AlixPartners suggests that traditional automakers are in for a very bumpy ride in the next few years as Chinese manufacturers increase their share of the world’s new car market to 33 percent. The financial pain to those companies who are used to being the perennial market leaders will be substantial, the company suggests. The 2024 report is a wakeup call for the automotive industry.
The report warns today’s leading automakers that they must urgently reinvent their standard automotive operating model because a rapid power shift from China is about to disrupt the global industry. As several transformative forces accelerate, automakers must be willing to change their approach to everything — from the way a vehicle is engineered to how revenue is captured over that vehicle’s lifetime. The 2024 Global Automotive Outlook finds Chinese automakers are increasingly setting the standard for an industry historically steered by the West, Japan, and South Korea.
By 2030, Chinese brands will be a dominant force around the world, selling 9 million units outside China, for a 33% global share. Growth will be built on cost advantages, localized production strategies in markets other than China, and highly tech-enabled vehicles that meet evolving consumer preference for design and freshness, the report says. “The global auto industry has been shaped by several inflection points over the past half-century, including the emergence of Japanese prod.
