by Chinese SUVs at the Price of an Old Car?
Today, large SUVs cost from $40,000 to $70,000, but Zhu Jiangming predicts that in the future they could become cheaper to the level of used cars. This situation is possible primarily in China, where the automotive market is experiencing fierce competition, which could lead to the disappearance of many brands.
Stellantis, the owner of Jeep, has already invested in Leapmotor, indicating the potential of Chinese manufacturers. History already knows examples of Chinese companies buying well-known brands such as Volvo or MG, saving them from bankruptcy.
Technologies are Changing the Market
Zhu gives examples from other industries: large TVs and air conditioners have become significantly cheaper due to technological progress. He believes a similar scenario awaits the automotive industry. Currently, the most affordable SUV from Leapmotor, the C16, starts at $24,000, which is already significantly cheaper than Western counterparts.
However, not everyone agrees with such optimism. Competitors such as Great Wall Motor warn of the risks of excessive competition in China. Some even compare the situation to the real estate crisis that led to the bankruptcy of Evergrande.
Chinese manufacturers are actively expanding their presence in the global market, especially in the electric vehicle segment. Their price advantage and modern technologies pose a serious threat to Western automakers, particularly in Europe, where giants like Volkswagen are already facing difficulties.
Interestingly, even trade restrictions imposed by some countries do not stop Chinese manufacturers. Their strategy seems to be bearing fruit, and the automotive market may change forever. Stellantis, which has a stake in Leapmotor, is already demonstrating how traditional automakers are trying to adapt to new conditions.
