Online Reporter
AFTER early attempts that largely involved exporting China-designed cars with minor tweaks, Chinese automakers are now re-engineering vehicles from the ground up for foreign buyers, with models in the pipeline from small hatchbacks for Europe to pickups for Australia and Mexico, Reuters reported last week.
This trend is just one facet of a broader upgrade in Chinese carmakers’ overseas expansion.
But the upgrade goes far beyond the localisation of product research and development (R&D); it extends to in-depth integration across the entire industrial chain, including production, supply chains and services, fostering more complex and intensive mutually beneficial cooperation between Chinese and European automotive industries.
For a long time, the main approach of Chinese carmakers entering overseas markets was to adapt mature, market-proven domestic models for direct exports.
Currently, Chinese automakers’ “Going Global 2.0” approach is taking shape, involving deeper research into local demand in overseas markets and increased investment to better integrate into these markets. Behind this strategic upgrade lies the overall improvement of China’s vehicle industry.
Developing dedicated models for overseas markets requires a complete forward-engineering development system, a global R&D network, deep knowledge of local regulations and standards, and cross-cultural design and communication capabilities.
This comprehensive localisation strategy has naturally given rise to more complex and intensive industrial chain cooperation.
Such in-depth integration will only deepen the interdependence between Chinese automakers and European businesses.
European auto parts suppliers have long taken active steps to strengthen ties with their Chinese partners.
The global car industry is undergoing a dramatic transformation. New technologies such as electric vehicles and autonomous driving are reshaping the industry’s landscape. This trend is both an inevitable outcome of the technological revolution and a source of new opportunities for all parties.
Chinese automakers’ deep localisation creates jobs and contributes tax revenue overseas; openness to cooperation can help Europe maintain its position in auto parts and avoid missing out on the growth dividends of emerging industries.
From a broader perspective, this healthy complementarity and deep collaboration will improve the overall efficiency of the global automotive industry, speed up the market application of new technologies and ultimately benefit consumers.
This mutually beneficial cooperation, grounded in commercial logic and industrial principles, is not without real-world challenges. Protectionist measures and the “de-risking” rhetoric from certain politicians have recently cast a shadow over normal business collaboration.
But experience shows that the fundamental logic of industrial development will ultimately prevail over short-term disruptions.
China-Europe auto cooperation is about letting their complementary strengths shine.
As Chinese automakers intensify their localisation, both industries are set to achieve deeper integration and shared growth during the ongoing global automotive transformation. — People’s Daily Online
