Despite having made impressive jumps in recent years, the Chinese automotive industry is believed to still be a decade away from being globally competitive.
According to research firm Sanford C. Bernstein & Co., the Chinese automakers will have to increase their spending on research and development to help close the gap. The firm believes that “the Chinese are 80 percent there, 20 percent doesn’t sound very hard, but it’s probably the most complex bits to get right.”
In recent years, Chinese automakers have been losing ground in their home market as foreign automakers continue to increase local production. In addition, many automakers are releasing entry-level models, lower-priced to target specifically the general population in China.
[Source: The Truth About Cars]
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