From zero to hero

Over the past 25 years, China has risen from near obscurity to claim the top spot in global automotive manufacturing, now accounting for 39% of worldwide production. Given that non-luxury car making has always been a numbers-driven business dating back to the era of the Ford Model T, it will be increasingly difficult for legacy automakers to hold onto their market shares. Industry responses are telling: Nissan and Honda have entered merger talks, Stellantis is overhauling its leadership and strategic direction, and Volkswagen is planning factory closures. Meanwhile, the shift to electric vehicles and tariffs on Chinese imports are unlikely to improve the medium-term outlook for traditional car manufacturers.