A relaxation of factory ownership rules is set to bring a wave of investment into China. It will see existing brands expand their presence—and undoubtedly attract new players—in the world’s leading new car market.
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Western brands are not guaranteed success in what is already a diverse and highly competitive space, but even a small slice of the action is enticing enough. From January 2022, a new regulatory framework has allowed for additional foreign investment to be made through existing joint ventures (JVs) in China. With automakers made aware of this in advance, plans were set in motion some time ago to capitalise on the change. Announcements have come thick and fast.
Automakers react
In January 2022, Stellantis announced it would be upping its stake in the GAC-Stellantis JV from 50% to 75%. As part of its long-term plan, revealed in March 2022, the company revealed it is targeting revenues of €20bn (US$21.78bn) in China by 2030. Significantly, the news seemed to come as a surprise to
