CompaniesAmerican Standard (China) Co., LtdFollowBayerische Motoren Werke AGFollowBYD Co LtdFollowShow more companiesSHANGHAI, July 28 (Reuters) – For foreign automakers in China, it is time to double down on a turnaround or cut losses after ceding their leadership of the world’s biggest auto market to local, upstart brands.Announcements from some of the world’s largest automakers in recent days show they are taking a divergent path: some German brands and General Motors (GM.N) are betting on new electric vehicles, while Toyota (7203.T) and others have shifted to cost-cutting mode.For the first time, Chinese brands are market leaders, taking a 53% share in the first half of 2023, data from the China Association of Automobile Manufacturers (CAAM) showed.Global automakers, who for years have dominated the market along with their Chinese state-run partners, have been slow to pivot to the fast-growing market for EVs with competitive offerings.That has been costly. Tesla (TSLA.O), which has its largest factory in China, was the only foreign brand to take share in the first half, topping BMW (BMWG.DE) in popularity, according to CAAM data.With added pressure on China margins from a brutal price war this year, some automakers are scaling back with production cuts and layoffs, including Toyota and Mitsubishi (7211.T).But brands that drew a third of their sales from China before this year’s wipeout have no choice but to double down, said Yale Zhang, managing director at Shanghai-based consultancy Automotive Foresight.That includes Volkswagen (VOWG_p.DE) and GM.Reuters GraphicsVolkswagen, which has been outsold by BYD (002594.SZ) since late 2022, announced two agreements on Wednesday aimed at strengthening its position in China: a partnership with China’s Xpeng Inc (9868.HK) to build two new models from 2026 featuring Xpeng’s software, and plans to jointly develop Audi models and a new platform with its Chinese partner SAIC (600104.SS).”This major collaboration between Volkswagen and Xpeng is a milestone for our electrification strategy ‘in China for China’,” said Ralf Brandstatter, a VW board member on his social media account.GM, which saw a 9% decline in its Buick, Chevrolet and Cadillac sales in China in the first half, has been counting on EVs developed on its Ultium platform to turn things around.It has sold more than 12,000 Ultium-based EVs since the first model, the Cadillac Lyriq, started sales a year ago. Last month, GM cut the price of the luxury Lyriq by 14% in China.”We’ve got to have the right EVs at the right price with the right technology,” GM CEO Mary Barra told investors on a conference call on Tuesday, referring to the company’s China strategy.’CHINA EV INC'”VW and GM, who have historically been leaders in the market, both believe they can salvage their positioning and protect the share they currently have,” said Tu Le, an analyst at China-based research firm Sino Auto Insights.”It points to how important China is for their global…
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