One automotive industry question popped up time and again in 2024:
‘How have the new car brands from China become so competitive, so quickly?’
There are plenty of answers. Strong product appeal, heavy home-government subsidies, and the sheer economic scale of their operations are just some of them.
Unfortunately for the ‘legacy’ car brands they’re competing against these competitive tools aren’t always readily accessible.
But there is one powerful driver accelerating the competitiveness of these new automotive brands, a factor so essential every legacy automaker should be focussed on it right now, and it’s this:
How these comparatively new automakers are operating their businesses.
In many critical areas they’re very lean and automated.
They listen to customers and change existing products and create new ones quickly.
And they’re also often light on bureaucracy, which means quicker decisions and actions.
Sure, it’s obvious China currently has the lead when it comes to high-voltage Lithium ion batteries and the mass-production of new electric vehicles. But there’s more to this story than EV tech and lower costs.
It’s the HOW of car-making that is one of their big advantages, which is why you can expect to see many big legacy automakers changing their habits in the coming few years.
And some of these changes will likely be the biggest they’ve ever undertaken.
Watch this space.
— Bernie Quinn, CEO of Premcar
About Premcar:
Premcar Pty Ltd is a leading Australian vehicle engineering business that specialises in the automotive, defence and aerospace industries. For more than 25 years, global car-makers have made Premcar their go-to partner for the complete design, engineering and manufacture of niche-model new cars, full-scale new-vehicle development programs, and electric vehicle (EV) conversions and manufacturing. Premcar’s body of work is extensive. It is the name behind more than 200,000 new cars and 55,000 new-vehicle engines. The company has delivered technical advancements and sales success for major car brands from Europe, the USA, Japan, China and Australia. Visit premcar.au.
