Chinese automotive brands that have recently entered the European and UK markets are threatened with leaving due to too frequent model updates and economic instability, according to Skoda Board Member for Sales and Marketing, Martin Jahn.
According to the top manager, the Chinese automotive industry is facing inevitable consolidation. The current situation, in which there are about 150 electric vehicle brands in China, does not allow most companies to recoup their investments. Frequent model changes and a large number of brands complicate the formation of sustainable demand and undermine the business model of manufacturers.
Skoda Board Member for Technical Development, Johannes Neft, noted that the company is closely monitoring Chinese competitors, but considers a clear identity of the model range to be a key success factor. According to him, Skoda models such as Kodiaq, Superb and Fabia are well recognizable and understandable to customers.
In contrast, a number of new Chinese brands lack a clear differentiation between models, which makes it difficult to perceive products in the European market and reduces the chances of a long-term presence.