A few months ago, Carlos Tavares, true to his style, did not mince words: “We don’t need factories in China,” he explained to some journalists. Last October, Stellantis announced the closure of its joint venture with the Chinese GAC. Together the two companies produced Jeeps. The group of 14 brands is also reviewing its partnership with Dongfeng, with which it still produces Peugeot and Citroen on Chinese soil. Today, Stellantis weighs more than 0.5% market share in the country.
The same music in Renault
At Renault, we hear the same little tune. The manufacturer was one of the last in the sector to settle in the territory and, to this day, only retains one toe. It no longer produces, through a joint venture with Nissan and Dongfeng, that Dacia Spring. Cars for the European market. Renault has never managed to establish itself in the country anyway.
“It’s very difficult to explain why French automakers never managed to break into China,” admits Arnaud Aymé, a partner at SIA Partners. The transport specialist, however, advances a hypothesis: the positioning of Renault and Stellantis. “They chose to approach the Chinese market with general models, neither low cost nor premium. They did not know how to differentiate themselves from other manufacturers that operated in China, such as Volkswagen, for example, which it established before its Audi and Porsche brands, ”he explains. .
A complicated equation for all foreign manufacturers
Even so, today, the equation is complicated for all foreign manufacturers. Very strong local competition, price war, everyone is fighting. The figures provided by the China Association of Automobile Manufacturers are instructive. Two years ago, foreign brands accounted for 60% of passenger car sales in China. Last December, their stake dropped to 43%. “We may go back to China one day, but today it is far from a priority,” we slipped to Renault before concluding: “China is really a pain in the ass!”
Source: BFM TV
