Chinese automakers will gobble up a third of the global car market by the end of current decade (2030), driven by swift advancements in their electric vehicle (EV) technology and strategic market expansion, according to consulting firm AlixPartners’ latest report. Historically, Chinese automakers were considered minor players in the global car market, but now they are emerging as formidable competitors capable of outshining European and American well-established brands.

AlixPartners’s newly-published report projects that Chinese car makers will account for 33 per cent of the world’s entire passenger vehicle market by the end of this decade. The projected figure is significantly up from Chinese automakers’ current share of around 21 per cent. As per the report, one in every three new cars sold in the year of 2030 will come from a Chinese automaker. At present, the Chinese brands account for one in every five.

That is really alarming for established legacy automakers like Ford, Toyota and Volkswagen. Experts at AlixPartners suggested that legacy automakers must change their ways fast and enhance their strategies or risk falling into irrelevance.

Andrew Bergbaum, a senior executive at AlixPartners, warned that automakers that will continue operating under their existing business-as-usual principles would descend into obsolescence if they don’t change their policies quickly.

Speaking on the topic, Bergbaum said, “Automakers expecting to continue operating under business-as-usual principles are in for more than just a rude awakening—they are headed for obsolescence. The revolution taking place in the global auto industry is driven by the incredible and once unthinkable maturation of Chinese automakers that do a number of things differently.”

A lot of the projected growth will take place in the Chinese market, where homegrown electric automobile brands are already enjoying an advantage over legacy automakers like Volkswagen. However, Chinese automakers are seriously expanding globally too. Outside of China, Chinese brands’ market share is projected to increase from 3 per cent in 2024 to 13 per cent in 2030. To put Chinese automakers’ epic expansion into perspective, in recent years the country surpassed Germany and Japan to snatch the title of the world’s top vehicle exporter.

The projected dominance of Chinese brands in the fast-expanding car market by the end of current decade signals a transformative shift in the automotive world. Legacy automakers must response swiftly as well as strategically to this emerging challenge. Only time will tell if they can rise to this challenge and evolve in response to the disruptive force of Chinese EVs.