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This is exactly the problem. It's a game in the existing market without any additional growth.

it's not strange, jeff bezos can buy dozens of yachts, but most people will only buy 1 car for several years




That doesn't make any sense. There are 10s of millions of newly middle class consumers in Asia.


Maybe that's true, but maybe the average cost of a new car in Asia is quite a bit lower, so the overall effect is still declining total overall sales (measured in USD)?

Here's a fascinating video about a city in China that's full of cute electric cars that cost less than $5000 USD each:

https://www.youtube.com/watch?v=AomxytSwrkY


I looked around some more and it seems that it is, in fact, the total number of units sold that peaked, not the total dollars of sales.

I found a good video that outlines all the reasons:

https://www.youtube.com/watch?v=xsXxfx_UsVI


that's another problem - inequality in the global value chain,

China is the most important growth market for passenger vehicles for last 20+ years, this is because of China's continuous industrial upgrading, which has gradually shifted from manufacturing low value-added products (such as jeans) to producing high value-added products (such as passenger vehicles).

this brings '10s of millions of newly middle class consumers', same thing happened in Japan/Korea/Taiwan too

but now, china produced 30 million cars (12m evs) in 2024, which means China's passenger vehicle market will quickly approach saturation, even if all Chinese families purchase or replace new vehicles

btw, '10s of millions newly consumers' is a relatively small number

and there will be no other markets with '10s of millions of newly middle class consumers' unless other countries can accompolish industrial upgrading like China's did

and if these countries(India/indonesia/Vietnam) manage to do so, their industrial upgrading will intensify this competition just like what happened in China now




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