Part 5/7:
Lessons from Legacy Automakers
The changes in the automotive landscape are not limited to China; legacy automakers from the West are also feeling the pressure. Recent trends have shown significant declines in sales for these incumbents, forcing them to shut down factories due to underutilization. Reports indicate that many of these factories are operating under 60% capacity, a situation that leads to inflated production costs and diminished profitability.
As sales from legacy manufacturers fall, the challenge of maintaining operational efficiency grows. The narrative is dire: with legacy players increasingly struggling against their Chinese counterparts, there exists a market for those who can adapt swiftly to the changes brought on by electric vehicles (EVs) and sustainable practices.