FT: Global automakers are silently pulling out of China

International car manufacturers have begun a tacit exit from the Chinese market, which has become the world's leading aftermarket.

Qazet.az reports, The Financial Times reports this, citing industry representatives and experts.

Behind this departure of companies is the uncertainty associated with the tough anti-COVID policy of the Chinese authorities, as well as growing fears of worsening relations with China.

According to the head of Volvo Car (a division of the Chinese Geely) Jim Rowan, "the longer the pandemic drags on, the more uncertainty" around. The company had already announced earlier this year that it was expanding the use of non-China parts. Ford spokesman Ted Cannis, in turn, believes that "the entire automotive industry is now undergoing a massive overhaul of logistics operations," and "supply chains will be in the spotlight in the next decade."

General Motors said it already manufactures most parts for its North American plants in the same region, noting that "supply chain issues in recent years have increased the importance of ... a flexible sourcing model."

Mazda also announced that it is moving the production of a number of parts from China to Japan. Honda said it was considering options to limit supply chain risks, although it did not confirm media reports that it wants to use as few parts from China as possible in its cars and motorcycles. Thus, even Japanese companies, which are less dependent on the Chinese market, have begun to reduce their presence in the Chinese market, the FT notes.