Stormy skies over the Czech automotive industry: How to prepare for Chinese competition?
In the Czech Republic, the automotive industry is unusually quiet ahead of the coming storm. Domestic car manufacturers, especially Škoda Auto, are still continuing productive production and sales, which has important implications for many other companies operating as subcontractors. However, there is already competition abroad that is planning a violent attack and is likely to change conditions in the automotive industry across Europe, including in the Czech Republic.
So how will domestic manufacturers try to compete? While Chinese carmakers remain more of a spectator in the Czech market, the former, like MG, are already gaining ground. Their models are gaining attention thanks to their excellent price/performance ratio. However, it should be remembered that this is only the beginning and the biggest players in the Chinese industry are yet to enter other European markets.
For consumers, this may ultimately be positive news, as Chinese carmakers offer competitive products at affordable prices. One example is the new Galaxy E8 from Geely, which also owns the Volvo brand. This luxury sedan sells in China for a fraction of the price you would buy a base model for here. This shows that Chinese brands are not only a cheap alternative, but also offer top quality.
The Geely Galaxy E8 comes with a luxurious interior, high performance and a long range on a single charge. It appears that the mandatory electric mobility in the EU opens the door for new players in the market and puts pressure on traditional European manufacturers to adapt quickly to the new conditions. Their ability to compete depends on their ability to innovate and bring competitive products to the market.
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