2024-01-12
40 分钟This episode of Money Talks is supported by IDA Ireland.
With the highest share of STEM graduates per capita in the EU,
IDA Ireland can help source the skills you need to internationalise and thrive.
Visit IDAIreland.com to learn more.
In the late 1980s, as China was opening up, Volkswagen spotted an opportunity.
At the time,
Beijing's roughly 10 million residents made most of their journeys on one of the 8.4 million bicycles registered in the city.
VW wanted to sell them cars.
To do that, the German carmaker was required to partner with a local firm.
So it jumped into two joint ventures, and by 1995, it controlled 70% of the domestic car market.
Soon, VW's global rivals also arrived in China.
But there was no guarantee they would have the same success as Andy Okap from Jeep Corporation explained in 1997.
This is not a market that has long history in automotive that you can't predict.
It's just a whole new baby that's being born.
VW's dominance didn't last.
By 2004, its share of the market had slipped to 15%.
That same year, Chinese firm BYD entered the car market,
making internal combustion engine vehicles and eventually following with electric vehicles too.
Funded, in part, by generous government subsidies, as executive Harry Li explained.
The government incentive and promotion that's important for electric vehicles,