EVS at a Cross­roads

Jan­uary 30, 2018

NewsChina - - SOCIETY -

In 1983, Shang­hai Volk­swa­gen, a joint ven­ture be­tween

SAIC Mo­tor and the Volk­swa­gen Group, rolled out the

San­tana brand, a car pop­u­lar on the Chi­nese mar­ket for more than two decades. It kicked off the first boom in joint ven­tures in the Chi­nese auto in­dus­try. In 2018, af­ter the lat­est round of joint ven­ture en­ter­prises swept the coun­try, at least four world-lead­ing auto gi­ants have es­tab­lished joint ven­tures in con­junc­tion with their Chi­nese coun­ter­parts. The dif­fer­ence now is that they are mainly fo­cus­ing on the elec­tric ve­hi­cle (EV) sec­tor. In­sid­ers ar­gued that over the past 30 years, joint ven­tures have dom­i­nated the mar­ket but brought lit­tle ad­vanced tech­nol­ogy to Chi­nese au­tomak­ers. In the EV sec­tor, Chi­nese au­tomak­ers have im­proved sub­stan­tially in tech­nol­ogy, mar­ket­ing and in­fra­struc­ture, and they must be cau­tious when ini­ti­at­ing joint ven­tures with over­seas auto gi­ants.

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