Are German Cars Fully Evacuated From China? The Loss Is Too Great To Make The...

Let's have a chat today. Can German auto companies really leave the Chinese market?
First of all, we must see that Germany has a dominant position in China's large market share.
According to the data in 2021, German auto companies sold 5.8 million vehicles in China, accounting for 25% of the global sales of German auto companies. In 2022, the sales volume of Volkswagen in China reached 3.3 million, accounting for 45% of the total global sales. There is no doubt that the Chinese market plays a very important role in the global layout of German auto companies.
In 2021, the sales volume of Volkswagen in China reached 2.4055 million vehicles, far surpassing other brands and becoming the first brand of Chinese automobile. In addition to other German brands, the sales volume of German cars reached 4.9949 million, accounting for 23.23% of the total market, second only to Chinese independent brands.
Traditionally, compact cars have the best sales volume of German cars in China, and among the compact cars, Lavida has the largest sales volume. For example, the sales volume of Langyi reached 429500 in 2021. Volkswagen's new energy vehicles have also made good achievements because of catching up with the tide of new energy vehicles in China.
The German family cannot only look at Volkswagen. After all, China's luxury car market is basically dominated by BMW, Mercedes and Audi. Japanese Lexus, American Cadillac and Volvo have been squeezed into niche brands by BBA.
If German auto companies withdraw from China, they will face huge net losses. Assuming that the average unit price of each German car is 200000 and the annual sales volume is nearly 5 million, it will cause a loss of 1 trillion yuan. This is an unbearable loss for Germany's annual economic aggregate of US $4 trillion.
Secondly, we must see that China's automobile market occupies a very important position in the global market.
German auto industry experts pointed out that in the first half of 2022, the U.S. auto market shrank by 18%, while the European Union shrank by 14%, while China's new car sales increased by 4% in the first half. In 2023, the Federal Reserve entered the interest rate increase cycle, and the world was facing the risk of deflation. Under this background, China's automobile market has become the ballast stone of the world's automobile market.
Not only that, China's auto market has great potential! At present, China has 110 cars per 1000 people, while the United States has 750 cars per 1000 people. According to this estimate, China's long-term market potential has reached 50 million new cars. Even in terms of 200000 yuan per car, there is a vast market of 10 trillion yuan.
The most important thing is that China is becoming the center of the world's automobile manufacturing, leaving this center will inevitably be marginalized.
Now, China's contribution to the world auto market is becoming more and more important. In 2021, China's auto production and sales in the whole year will reach 26.082 million and 26.275 million respectively, up 3.4% and 3.8% year on year respectively, maintaining the first place in the global auto production and sales for 13 consecutive years.
With the production and sales volume ranking first in the world for 13 consecutive years, China's car manufacturing technology also stands at the top of the world. In 2021, the average driving range of pure electric passenger vehicles in China will increase from 253 kilometers in 2016 to 400 kilometers. In 2021, the energy density of single power battery in China will be close to 300 Wh/kg, and the system energy density will be more than 200 Wh/kg. The market share of new passenger vehicles equipped with combined driving assistance system will reach 20%.
In this regard, the German people are still sober. German industry experts said that today, 75% of electric vehicle batteries are produced in China. Companies with relevant technologies, such as Ningde Times, China Innovation Airlines, BYD, Funeng Technology, Guoxuan Hi-Tech, Honeycomb Energy and other battery companies, are building factories in Germany and Europe. Not only batteries, Germany also needs to introduce network computing, automatic driving and other technologies from China. If the border is closed and the United States chooses the side to stand in line, the final result is that German car companies will lose their future.
In a word, German auto companies are reluctant to leave China.
Once German auto companies leave China, the empty market will inevitably be occupied by American and Japanese cars and Chinese brand cars. The proportion of German manufacturing industry is very large! Once the auto industry shrinks, Germany will degenerate into ordinary countries like Poland and Italy, and will no longer be the first economic power in Europe.
However, the governor of history believes that German auto companies will withdraw from the Chinese market sooner or later, because the growing strength of Chinese self-owned brand cars will increasingly squeeze the market share of German cars in China. Some day in the future, German cars may be abandoned by Chinese consumers like Samsung mobile phones, and can only be defeated by Maicheng.

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