Why Is China Dominating Global Car Production?

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00:00And looking at car production figures for 2024, China produced 31 million cars,

00:07more than three times the number produced by the US, and about four times the number produced by

00:13Japan. Why is China dominating so much in this sector?

00:19Well, China is a very interesting case. Some people say, well, China is the new Japan.

00:26You know, they remember what Japan was in the 70s and the 80s and even in the 90s.

00:32But in fact, China is very different. And it's very different because while Japan has

00:36imposed itself on the market by adopting the system and by trying to be competitive within the existing

00:45system of supplying the automotive industry with their own approach of Kaizen, which means

00:52continuous improvement, basing on quality, on reliability, on lean manufacturing, and a lot

00:59of cooperation between the car manufacturer, the suppliers, and even the government, China has a

01:04completely different approach. China is not trying to adapt to the system. China is trying to change

01:12the system, to adapt, to put in place a system that is more in line with their own interests and

01:18their own talent. So they are trying to leapfrog the technology. They became masters in EV, taking

01:25advantage of the fact that the Japanese or the Koreans or even the Europeans were late on EV.

01:32They've developed a lot of technology in batteries. They're developing a lot of software. They're creating

01:38an ecosystem, a digital ecosystem. So the Chinese are trying to change this industry to their own

01:45benefit. On top of this, they have a huge cost advantage that they are, in fact, exercising in

01:52all the market. And there is a very, very strong coordination between the government from one side,

01:59the industry, the infrastructure, and the financial system. So it makes really China a very strong

02:06actor that everybody's going to have to deal with for the years to come.