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Markets Is China Suitable as a Role Model?

From Xing Zhou, Claus Hafner, Willy Wang* | Translated by AI 4 min Reading Time

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SIMTOS (Seoul International Machine Tool Show)

The term "lead market" has long been a lived reality for China and poses existential questions for European Tier-1 and Tier-2 suppliers. It is no longer just about having a presence in China, but about adapting to an entirely new industrial standard: "China Speed."

Volkswagen has already introduced vehicles in China specifically tailored to the market, which are not based on existing VW platforms.(Image: Volkswagen AG)
Volkswagen has already introduced vehicles in China specifically tailored to the market, which are not based on existing VW platforms.
(Image: Volkswagen AG)

While European suppliers dominated for decades through technological advantages and economies of scale, Chinese competitors have now leveled the playing field. On the OEM side, it is noteworthy that European manufacturers have significantly expanded their footprint in China. Specifically, the Volkswagen Group should be mentioned, which, with its dedicated "local-for-local" strategy, has already introduced vehicles specifically tailored to the Chinese market that are not based on existing VW platforms. Examples of this are the AUDI E5 and the ID Unyx 08, which are based on platforms from SAIC and Xpeng, respectively.

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