Well analysed and an excellent read Philipp. My country India offers the third angle. Although we’re the third largest market after China and the US, 40% is dominated by Suzuki. The top 5 players hold 90% of the market, leaving scraps for the rest. The Indian government has a wishy-washy approach to Chinese EVs because it needs the investment, but political and geo-strategic disputes prevent it sans restrictions.
Even though we’re known as an IT hub, witnessing how quickly China has transitioned from hardware to software in smartphones and vehicles is equal parts impressive and concerning. Unless India, the EU and the US step up our game, we risk being steamrolled by the Chinese juggernaut.
Dear Philipp, thank you for this highly illuminating article.
I think the days of OEM execs on expenses making agreeable deals are over.
China has power, is aggressive and now has technology too.
Lest we forget Nortel, a world leader in telecoms switch gear, which mysteriously went bust very quickly soon after moving into a purpose built complex. Huawei happened to be a sub-contractor at the time, and became.... the biggest telecoms switchgear company in the world.
It's not personal.
It's business.
This is survival.
Certain companies want to cut down the offer price while destroying the base out of sight. Complacency is the icing on that cake.
Many years later, after numerous inquests, the 'new' offices Nortel moved into were torn down. In every single room there were multiple - multiple - listening devices.
Wow the author has been sucking in Trumps’ hate-China propaganda a bit too much, don’t you think? Who has actually ruined EU’s economy, forced you to fight your neighbors? It wasn’t China.
Unfortunately Huawei came to the game without a real ability to sell enough cars through its own sales network to make its partners money. Series (Aito) is taking over more of the product planning and distribution functions, just detailed the past few days. Xiaomi is facing similar problems. See my substack smitka.substack.com for details.
Note auto sales are down 20% at a time when new EV capacity is coming online. HIMA wouldn't be able to contract out assembly if the industry wasn't laden with excess capacity.
Well analysed and an excellent read Philipp. My country India offers the third angle. Although we’re the third largest market after China and the US, 40% is dominated by Suzuki. The top 5 players hold 90% of the market, leaving scraps for the rest. The Indian government has a wishy-washy approach to Chinese EVs because it needs the investment, but political and geo-strategic disputes prevent it sans restrictions.
Even though we’re known as an IT hub, witnessing how quickly China has transitioned from hardware to software in smartphones and vehicles is equal parts impressive and concerning. Unless India, the EU and the US step up our game, we risk being steamrolled by the Chinese juggernaut.
Thanks a lot 🙏
Huawei is actually the most profitable car company in China. I discuss its business model in this essay:
https://leonliao.substack.com/p/huawei-does-not-build-cars-yet-it?r=731anr&utm_medium=ios
Dear Philipp, thank you for this highly illuminating article.
I think the days of OEM execs on expenses making agreeable deals are over.
China has power, is aggressive and now has technology too.
Lest we forget Nortel, a world leader in telecoms switch gear, which mysteriously went bust very quickly soon after moving into a purpose built complex. Huawei happened to be a sub-contractor at the time, and became.... the biggest telecoms switchgear company in the world.
It's not personal.
It's business.
This is survival.
Certain companies want to cut down the offer price while destroying the base out of sight. Complacency is the icing on that cake.
Many years later, after numerous inquests, the 'new' offices Nortel moved into were torn down. In every single room there were multiple - multiple - listening devices.
The company never stood a chance.
Beware.
Wow the author has been sucking in Trumps’ hate-China propaganda a bit too much, don’t you think? Who has actually ruined EU’s economy, forced you to fight your neighbors? It wasn’t China.
Lol, read the newsletter before commenting
Unfortunately Huawei came to the game without a real ability to sell enough cars through its own sales network to make its partners money. Series (Aito) is taking over more of the product planning and distribution functions, just detailed the past few days. Xiaomi is facing similar problems. See my substack smitka.substack.com for details.
Note auto sales are down 20% at a time when new EV capacity is coming online. HIMA wouldn't be able to contract out assembly if the industry wasn't laden with excess capacity.