China’s Carmakers Must Avoid Home Mistakes Overseas

China’s car market is becoming saturated. With sales set to decline in the coming year, it’s no surprise that homegrown automakers are looking to redouble their efforts overseas. But in order to remain welcome in their host markets, they should localize production and avoid the worst excesses of an ongoing price war at home.

Annual revenues in the world’s largest car market are expected to decline for the first time since 2022, by 3% to 5%, according to Bloomberg Intelligence. When the country emerged after three years of pandemic controls, there were high hopes of economic recovery. That hasn’t happened. Consumers have been reeling from the impact of a real estate crash and prolonged job insecurity, especially among the younger generation.