China, India and the global auto industry’s transformation
Zhejiang Geely Holding Group’s acquisition of a 49.9% stake in Malaysian automaker Proton Holdings from DRB-Hicom is unlikely to trigger an immediate change in the Southeast Asian market overall. Japanese automakers, particularly Toyota Motor, hold overwhelming shares in the region. South Korean automakers have been unable to wrest away that turf, and Chinese players have little chance of doing so. But there is no question that Chinese automakers are speeding up their overseas expansion. China expects growth in domestic new car sales to stagnate in the 2020s. In anticipation, indigenous manufacturers see a need to raise their international profiles, and buying up technology and brands is a quick way to do that.
