Guan Cha Zhe Wang·2025-05-15 01:43Core Insights - Stellantis executives express shock over the declining market share of foreign car manufacturers in China, warning that Western brands may have no future in the Chinese market as local competitors close in on their last strongholds [1][2][4] Group 1: Market Trends - Foreign brands' market share in China has dropped to 32% in the first two months of this year, less than half of what it was in 2020, with BYD now the top-selling brand, surpassing Volkswagen [4] - Local brands are increasingly capturing market share across all vehicle segments, particularly in electric and large vehicle categories, posing a significant challenge to foreign manufacturers [2][4] Group 2: Strategic Responses - In response to fierce competition, Volkswagen and other German manufacturers are doubling down on their investments in China, with Volkswagen announcing an additional €2.5 billion investment to regain consumer interest [5] - Volkswagen plans to re-enter the Chinese electric vehicle market by Q3 2026, aiming to improve its performance in battery electric vehicles with new products [5] Group 3: Stellantis' Position - Stellantis is strategically collaborating with Chinese electric vehicle brand Leap Motor, investing €1.5 billion to promote Chinese electric vehicle technology in Europe and Southeast Asia [6] - Stellantis has been optimizing its supply chain and deepening partnerships with Chinese suppliers, while also considering relocating some electric vehicle production outside of China due to EU tariffs [6] Group 4: European Market Dynamics - Chinese automakers are adjusting their strategies in the European market by launching plug-in hybrid models, resulting in a significant increase in sales, with a 78% year-on-year growth in Q1 2025 [7]