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What the numbers say: China is the largest light commercial vehicle (LCV) maker in Asia and the world. The country manufactured more vehicles in 2022 than the next two largest Asian auto-manufacturing nations combined. Thailand, the second largest Asian LCV manufacturer, produced slightly more vehicles than Japan and significantly more than India. Relevance: The automotive manufacturing industry generated total global revenue of $2.95T in 2022, down from $3T in 2019. Despite declining during the pandemic, automotive manufacturing remains a key economic sector worldwide. China's dominance in the industry is increasingly viewed as a threat by the U.S. government amid rising tensions between Washington and Beijing. Deteriorating relations between China and Western countries may result in trade barriers and stricter regulations that disrupt the operations of U.S. and EU auto firms, which often source many of their parts from China. Brands that should care: U.S. and European automakers may benefit from reducing their reliance on China's supply chain to pre-empt the effects of possible disruptions stemming from geopolitical instability. International logistics firms may also consider preemptively reducing their exposure to the automotive trade between China and Western countries |
