China’s shifting automotive scene

Just as suppliers began to nervously reassess their commitment to investment in the country, conditions change for the better

The flattening of new-vehicle sales in China in 2011 and 2012, following the surge of demand in the preceding years, drew considerable attention in supplier boardrooms throughout the world. Was there a danger of over-committing to China, especially with new opportunities arising in Mexico, Brazil and India? Would the central government’s campaign to cut back on public consumption cause the China’s auto market to taper off? Would supplier overcapacity become an issue?