Automobile production and sales have increased in China this year. Alternative vehicles, otherwise referred to as new energy vehicles (NEVs) have led the increases by a thousand-fold since 2011. It was also announced that China currently produces hundreds of thousands of NEVs every year making the industry attractive for non-Chinese investors.
According to JDSupra, foreign investors, joint venture partners, and other financial entities have found it challenging to do business in China. The report claimed that these entities that want to engage with Chinese automobile producers due to complex factors concerning the protection of their investments and the maximization of their business opportunities.
Hence, Morgan Lewis created a global automotive team that would aid those who are interested in engaging in business with highly successful Chinese automobile production players.
The report revealed that it has established a series of automotive industry-focused webinars that followed a 10-part 2019 program. The said program was shown to give a comprehensive overview to clients about the Chinese automotive industry.
In another report, Clean Technica showed that China's 2019 electric vehicle market share had increased to a rate of 4.7 percent amid tighter incentives imposed in the country. China, still considered as the largest automobile market in the world, experienced an 8.4 percent fall in sales of combustion vehicles in 2019. However, the EV market share raised from 4.5 to 4.7 percent amid the fall in sales.
Chinese government officials were said to expect fossil vehicle sales to fall by 2020 again, but the said EV market in China would maintain its good market health due to the stable incentive environment and upon the entry of Tesla's locally-made vehicles in China.
Last Monday, the China Association of Automobile Manufacturers, the 2019 decline is an improvement compared to 2018 values. Although the passenger and commercial vehicle sales also dropped last year, Shi Jianhua of CAAM claimed that the industry would move away from the high-speed development stage.
He added that the industry has accepted that low-speed development is the more appropriate approach to improve its performance and that it has enjoyed tremendous growth for decades. It was also shared that although Ford experienced a rapid decline 26.1 percent from China sales, makers such as Tesla, Nio, and other EV producers may expect higher growth in sales in the coming years.
It was also highlighted that China's NEV policies guided by MIIT would remain relatively steady this year, claimed MIIT senior official Miao Wei.
