Part 6/9:
The dynamics of the automotive industry can be defined as a zero-sum game. The growth of one company often correlates with the decline of another. This reality is evident in the declining sales figures of legacy automakers, such as Japanese manufacturers and General Motors, which have witnessed significant downturns in China—reportedly as much as a 50% decrease in the last four years.
B's CEO has openly expressed ambitions to oust these legacy brands from the Chinese market by providing better products at more favorable prices. This competitive thrust has made the environment increasingly challenging for established players, prompting discussions around whether such practices are justified.