Automobile survey shows that car companies rely on China Volkswagen/GM 40% sales from China

With the development of the Chinese auto market, the dependence of the world's automakers on China is also increasing. The latest auto survey found that auto companies are extremely dependent on the Chinese market. Volkswagen and GM's sales of 40% are from China, and BMW and Audi's sales in China are more than one-fifth.

The Center of Automotive Management's "Car Performance in 2018" study at Bergisch Gladbach in Germany examined the performance of 20 car companies in several automotive markets around the world. The study found that car companies rely heavily on the main car market, and this strategy is a double-edged sword. Stefan Bratzel, head of the car management center, said: "The main automotive market in the world can greatly benefit car companies, increase brand share in the shortest time, and cover up the brand's poor performance in other markets. However, once the brand performs poorly in the major auto market, car companies must face potentially high risks. In the long run, car companies should balance the distribution of brands in the world's auto markets."

The survey found that China is the preferred target market for major car companies. Both Volkswagen and GM regard China as the most important market. More than 40% of their sales come from China, far exceeding their domestic sales. Sales of BMW, Honda and Nissan in China exceeded one-fifth of total sales. Tesla's sales in China also reached 12%.

According to the survey, the major car companies have different sales settings for the target market:

Volkswagen's largest target group is China, with sales accounting for 40%. Followed by local sales in Europe, accounting for 37%, and sales in the US only 6%.

Toyota's main sellers are Japan (44%), the United States (24%) and South Asian countries (19%), with sales in China accounting for only 13%.

GM's sales in China accounted for 42%, the United States 31%, and Europe only 13.3%.

Among German automakers, Audi's China sales accounted for 32%, which is significantly more dependent on Chinese auto markets than rival BMW (24%) and Mercedes-Benz (21%).

According to Stephen Bratzl, the safest and most stable brand strategy for auto companies is the average sales volume in China, the US and Europe. Compared with other car companies, BMW's strategy in this area is the most successful, and sales in China, the United States and Europe are relatively balanced.