{"id":116185,"date":"2024-04-22T08:28:54","date_gmt":"2024-04-22T08:28:54","guid":{"rendered":"https:\/\/alj.com\/?post_type=perspective&#038;p=116185"},"modified":"2024-07-08T11:18:04","modified_gmt":"2024-07-08T11:18:04","slug":"charging-ahead-in-china","status":"publish","type":"perspective","link":"https:\/\/alj.com\/en\/perspective\/charging-ahead-in-china\/","title":{"rendered":"Charging ahead in China"},"content":{"rendered":"<h4>Recently, we marked the 25<sup>th<\/sup> anniversary of Abdul Latif Jameel\u2019s entry into the Chinese automotive market. \u00a0During that time, Abdul Latif Jameel Motors China has established an exceptional reputation for quality, reliability and customer service.<\/h4>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-116214\" src=\"https:\/\/media.alj.com\/app\/uploads\/2024\/04\/ALJ-China-25.jpg\" alt=\"\" width=\"1369\" height=\"420\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2024\/04\/ALJ-China-25.jpg 1369w, https:\/\/media.alj.com\/app\/uploads\/2024\/04\/ALJ-China-25-300x92.jpg 300w, https:\/\/media.alj.com\/app\/uploads\/2024\/04\/ALJ-China-25-1024x314.jpg 1024w, https:\/\/media.alj.com\/app\/uploads\/2024\/04\/ALJ-China-25-150x46.jpg 150w, https:\/\/media.alj.com\/app\/uploads\/2024\/04\/ALJ-China-25-768x236.jpg 768w\" sizes=\"(max-width: 1369px) 100vw, 1369px\" \/><\/p>\n<p>We caught up with <a href=\"https:\/\/alj.com\/en\/our-people\/wang-heng-george\/\">George (\u738b\u6052) Wang<\/a>, Country General Manager, Abdul Latif Jameel China, to discuss the business\u2019s growth, the state of the China\u2019s automotive market and his ambitions for the future.<\/p>\n<h2>Can you provide a brief background of Abdul Latif Jameel Motors in China?<\/h2>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-116200 alignright\" src=\"https:\/\/media.alj.com\/app\/uploads\/2024\/04\/George-Wang-3-300x156.png\" alt=\"\" width=\"463\" height=\"241\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2024\/04\/George-Wang-3-300x156.png 300w, https:\/\/media.alj.com\/app\/uploads\/2024\/04\/George-Wang-3-1024x532.png 1024w, https:\/\/media.alj.com\/app\/uploads\/2024\/04\/George-Wang-3-150x78.png 150w, https:\/\/media.alj.com\/app\/uploads\/2024\/04\/George-Wang-3-768x399.png 768w, https:\/\/media.alj.com\/app\/uploads\/2024\/04\/George-Wang-3.png 1520w\" sizes=\"(max-width: 463px) 100vw, 463px\" \/>It is common to see foreign automotive businesses in China these days, but it did not used to be the case. \u00a0Abdul Latif Jameel was a pioneer when it first launched in China 25 years ago.<\/p>\n<p>The original plan was to setup a Toyota Authorized Service Station (TASS) to provide aftersales service for Chinese Toyota customers, as we had already been doing for many years in markets like Saudi Arabia.\u00a0 The first Abdul Latif Jameel TASS in China officially opened in Chengdu on November 11, 1998, the second in Qingdao in 2000, and the third in Wuhan in 2002.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignright size-medium wp-image-116207\" src=\"https:\/\/media.alj.com\/app\/uploads\/2024\/04\/ALJ-China-Map-300x255.jpg\" alt=\"\" width=\"300\" height=\"255\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2024\/04\/ALJ-China-Map-300x255.jpg 300w, https:\/\/media.alj.com\/app\/uploads\/2024\/04\/ALJ-China-Map-150x127.jpg 150w, https:\/\/media.alj.com\/app\/uploads\/2024\/04\/ALJ-China-Map.jpg 579w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>In 2002, Toyota Motor Corporation (TMC) and First Auto Works (FAW Group) signed a significant agreement in Beijing at the Great Hall of the People, to establish a strategic and long-term cooperative relationship.\u00a0 In 2003 they formed a 50:50 joint venture, FAW-Toyota Marketing and Sales, or \u2018FTMS\u2019, to step up the distribution and sale of Toyota passenger car sales in China.\u00a0 Abdul Latif Jameel China saw the opportunity to support Toyota\u2019s investment in the market by expanding its own operations and turning the three TASS sites into \u20184S\u2019 Toyota dealerships, covering <strong>s<\/strong>ales, <strong>s<\/strong>ervice, <strong>s<\/strong>pare parts, and survey, to cater to the growing number of Toyota owners in China.<\/p>\n<p>This was at a time when China\u2019s automotive market was really beginning to take off as more and more models entered the market.\u00a0 Tapping into this exciting growth over the past 25 years, Abdul Latif Jameel China has developed three more FTMS dealerships in Leshan, Yinchuan and Lanzhou, plus a Lexus dealership in Wuhan and another dealership in Chengdu (with Toyota\u2019s other JV partner GTMC). \u00a0It now operates in eight locations across four provinces.<\/p>\n<p><iframe loading=\"lazy\" title=\"Celebrating Abdul Latif Jameel Motors China&#039;s 25th Anniversary with George Wang \u738b\u6052 (EN VO Subs)\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/7p0gUt_iO1U?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h2>What has been Abdul Latif Jameel\u2019s strategy in China?<\/h2>\n<p>There are different ways to develop dealerships. \u00a0Our current strategy has so far been to go with Toyota\/Lexus only. \u00a0Abdul Latif Jameel Motors China has, in the past, declined invitations from other brands like Buick and Volkswagen in order to retain our deep relationship, award-winning focus, and mutual respect with Toyota. \u00a0TMC only chooses trusted investors to support its network expansion.\u00a0 Abdul Latif Jameel Motors China\u2019s outstanding performance over the past 25 years puts us in a strong position to maintain its partnership with TMC as it continues to grow in the market.<\/p>\n<h2>When did you first join Abdul Latif Jameel?<\/h2>\n<p>I joined Abdul Latif Jameel as a management trainee in Saudi Arabia in 1995.\u00a0 I only knew a little about the business at that time. \u00a0Abdul Latif Jameel was already well known in the MENAT region, but not so much elsewhere.\u00a0 Our Chairman, <a href=\"https:\/\/alj.com\/en\/our-people\/mohammed-abdul-latif-jameel\/\">Mohammed Jameel<\/a>, KBE, could foresee the potential in China, however, and was already planning to invest there.\u00a0 As a result, the businesses were actively recruiting management trainees from China.<\/p>\n<p><iframe loading=\"lazy\" title=\"Abdul Latif Jameel Management Trainee Program George Wang Heng (\u738b\u6052)  (EN VO Subs)\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/yyycd2TVxC0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>I had recently completed an important R&amp;D project as a project leader in China\u2019s Eighth National Five-Year Plan.\u00a0 As a result of this project and its exposure, I had the opportunity to visit the USA in 1992. \u00a0I was surprised with the diversity and volume of cars on the road and immediately realized the huge potential for the expansion of the private vehicle market in China. \u00a0I was already planning to study an MBA abroad as the next stage of my career development, so the Abdul Latif Jameel opportunity was perfect for me.\u00a0 It gave me the chance to study business management abroad while also launching a career in the automotive industry in China.<\/p>\n<h2>What is the position of Abdul Latif Jameel Motors and Toyota in the Chinese market today?\u00a0 How has this evolved over the years?<\/h2>\n<p>When Abdul Latif Jameel China started as a TASS in 1998, we hired nine Thai technicians who had previously worked in Abdul Latif Jameel Motors Saudi Arabia to provide quality assurance and deliver on-the-job-training for the first Chinese technicians.\u00a0 The values they brought with them from Abdul Latif Jameel in Saudi Arabia \u2013 high quality, reliability, \u2018best-in-town\u2019, long-term strategic partners \u2013 are still the values that underpin the reputation of Abdul Latif Jameel China today.<\/p>\n<figure id=\"attachment_19113\" aria-describedby=\"caption-attachment-19113\" style=\"width: 840px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-19113\" src=\"https:\/\/media.alj.com\/app\/uploads\/2018\/06\/AbdulLatifJameelMotorsinChinarecognizedasmarketleader.jpg\" alt=\"\" width=\"840\" height=\"440\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2018\/06\/AbdulLatifJameelMotorsinChinarecognizedasmarketleader.jpg 840w, https:\/\/media.alj.com\/app\/uploads\/2018\/06\/AbdulLatifJameelMotorsinChinarecognizedasmarketleader-150x79.jpg 150w, https:\/\/media.alj.com\/app\/uploads\/2018\/06\/AbdulLatifJameelMotorsinChinarecognizedasmarketleader-300x157.jpg 300w, https:\/\/media.alj.com\/app\/uploads\/2018\/06\/AbdulLatifJameelMotorsinChinarecognizedasmarketleader-768x402.jpg 768w\" sizes=\"(max-width: 840px) 100vw, 840px\" \/><figcaption id=\"caption-attachment-19113\" class=\"wp-caption-text\">Toyota technicians in Abdul Latif Jameel Motors Chengdu, celebrate yet another customer service award n 2018. Photo Credit: \u00a9 Abdul Latif Jameel<\/figcaption><\/figure>\n<p>Recently, with the growth of new energy vehicles (NEVs) in China, the market has become even more competitive as many new NEV manufacturers have entered the market. \u00a0This has placed additional pressure on Toyota as it is not seen as being as stylish or high-tech as some of the newer domestic Chinese NEV brands, with their ever-shorter product evolution cycles.<\/p>\n<h2>Abdul Latif Jameel Motors China has received numerous awards and recognition for quality, customer service, etc., over the years, how have you achieved this?<\/h2>\n<p>From very beginning, we followed Abdul Latif Jameel\u2019s philosophy and values: respect for our Associates, customers, business partners, and community; <a href=\"https:\/\/alj.com\/en\/perspective\/a-philosophy-for-better-business-and-a-better-life\/\">continuous improvement (kaizen)<\/a>; innovation; and empowerment.<\/p>\n<p>Respect for our Associates is one of our fundamental values.\u00a0 As senior management, we don\u2019t ask anything of our Associates that we are not prepared to do ourselves.\u00a0 For example, Associates are required to greet customers when they enter the site, so every Monday morning at 8 am management also stand at the gate to greet Associates, whatever the weather.\u00a0 In terms of respecting customers, we are proud to uphold Abdul Latif Jameel\u2019s \u2018guest first\u2019 philosophy.\u00a0 We encourage our Associates to go the extra mile to exceed our customers\u2019 expectations, so they are not only satisfied, but also delighted with the service and support they receive.\u00a0 As far as kaizen is concerned, by the end of 2023 we had completed more than 1,300 kaizen activities in Abdul Latif Jameel Motors China, involving more than 4,000person-times.<\/p>\n<p><iframe loading=\"lazy\" title=\"The Jameel Principles - George Wang (\u738b\u6052) on Respect for our Business Partner (EN VO\/Subs)\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/9Gjr_mlVEis?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>I think this focus on respect for our Associates, our \u2018guest first\u2019 philosophy and our commitment to continuous improvement are the foundations of the recognition and awards we have won for quality, customer service and customer loyalty.\u00a0 The most recent of these was the \u2018<a href=\"https:\/\/alj.com\/en\/news\/abdul-latif-jameel-motors-china-recognized-by-toyota-with-prestigious-2023-award-outstanding-dealer-group\/\">Outstanding Dealer Group\u2019<\/a> award we received at the FAW-Toyota Motor Sales (FTMS) annual dealer conference in Chengdu, in January 2024.\u00a0 This is the highest accolade given by FTMS.<\/p>\n<figure id=\"attachment_112929\" aria-describedby=\"caption-attachment-112929\" style=\"width: 1244px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-112929\" src=\"https:\/\/media.alj.com\/app\/uploads\/2024\/01\/Abdul-Latif-Jameel-Motors-China-awarded-Outstanding-Dealer-Group-2023-by-Toyota-4-2.jpg\" alt=\"Abdul Latif Jameel Motors China awarded Outstanding Dealer Group 2023 by Toyota 4 (2)\" width=\"1244\" height=\"727\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2024\/01\/Abdul-Latif-Jameel-Motors-China-awarded-Outstanding-Dealer-Group-2023-by-Toyota-4-2.jpg 1244w, https:\/\/media.alj.com\/app\/uploads\/2024\/01\/Abdul-Latif-Jameel-Motors-China-awarded-Outstanding-Dealer-Group-2023-by-Toyota-4-2-300x175.jpg 300w, https:\/\/media.alj.com\/app\/uploads\/2024\/01\/Abdul-Latif-Jameel-Motors-China-awarded-Outstanding-Dealer-Group-2023-by-Toyota-4-2-1024x598.jpg 1024w, https:\/\/media.alj.com\/app\/uploads\/2024\/01\/Abdul-Latif-Jameel-Motors-China-awarded-Outstanding-Dealer-Group-2023-by-Toyota-4-2-150x88.jpg 150w, https:\/\/media.alj.com\/app\/uploads\/2024\/01\/Abdul-Latif-Jameel-Motors-China-awarded-Outstanding-Dealer-Group-2023-by-Toyota-4-2-768x449.jpg 768w\" sizes=\"(max-width: 1244px) 100vw, 1244px\" \/><figcaption id=\"caption-attachment-112929\" class=\"wp-caption-text\">From left to right: \u94f6\u5ddd\u5b89\u5229\u6377\u4e30\u7530\u6c7d\u8f66\u9500\u552e\u670d\u52a1\u6709\u9650\u516c\u53f8\u603b\u7ecf\u7406 \u4ed8\u9759 Ms. Jing Fu, General Manager, Yinchuan ALJ Toyota Automobile Sales &amp; Service Co., Ltd. \u5b89\u5229\u6377\uff08\u6b66\u6c49\uff09\u4e30\u7530\u53ca\u6b66\u6c49\u5b89\u5229\u6377\u96f7\u514b\u8428\u65af\u6c7d\u8f66\u9500\u552e\u670d\u52a1\u6709\u9650\u516c\u53f8\u603b\u7ecf\u7406 \u9ad8\u6676 Ms. Jing Gao, General Manager, ALJ (Wuhan) Toyota Automobile Sales &amp; Service Co., Ltd. &amp; Wuhan ALJ Lexus Automobile Sales &amp; Service Co., Ltd. \u5b89\u5229\u6377\u4e2d\u56fd\u533a \u8fd0\u8425\u603b\u7ecf\u7406 \u5468\u96bd Ms. Anita Zhou, Operations General Manager China, Abdul Latif Jameel Motors \u5b89\u5229\u6377\u79fb\u52a8\u51fa\u884c\u4e1a\u52a1\u526f\u603b\u88c1 Jasmmine Wong Ms. Jasmmine Wong, Vice President, Mobility, Abdul Latif Jameel \u5b89\u5229\u6377\u4e2d\u56fd\u533a\u603b\u7ecf\u7406 \u738b\u6052 Mr. George Wang, Country General Manager China, Abdul Latif Jameel Motors \u5b89\u5229\u6377\uff08\u9752\u5c9b\uff09\u4e30\u7530\u6c7d\u8f66\u9500\u552e\u670d\u52a1\u6709\u9650\u516c\u53f8\u603b\u7ecf\u7406 \u6731\u4e16\u6770 Mr. Shijie Zhu, General Manager, Anlijie (Qingdao) Toyota Automobile Sales &amp; Service Co., Ltd. \u4e50\u5c71\u5b89\u5229\u6377\u4e30\u7530\u6c7d\u8f66\u9500\u552e\u670d\u52a1\u6709\u9650\u516c\u53f8\u603b\u7ecf\u7406 \u738b\u5174\u6842 Mr. Xinggui Wang, General Manager, Leshan ALJ Toyota Automobile Sales &amp; Service Co., Ltd.<\/figcaption><\/figure>\n<p>Selected from more than 100 dealer groups with over 700 dealership outlets working with FTMS around the country, the award recognized Abdul Latif Jameel Motors China\u2019s performance across a range of criteria, including vehicle, parts and service sales, financial performance, customer satisfaction and loyalty.<\/p>\n<p>This is especially gratifying, given the difficult market conditions experienced by Toyota dealers in China in 2023.\u00a0 Our Associates rose to the challenge and maintained our commitment to customers. I really appreciate our Associates\u2019 courage, wisdom, and hard work, and would like to also thank our Associates at HQ, for their guidance and support.<\/p>\n<h2>Many of our customers in China are extremely loyal.\u00a0 What makes them come back time and time again?<\/h2>\n<p>Some customers have been with us for more than 20 years; some have bought multiple vehicles from us; some have referred friends and relatives; and some have provided valuable feedback we\u2019ve been able to implement to improve our service levels even more.<\/p>\n<p><iframe loading=\"lazy\" title=\"Abdul Latif Jameel Motors China - Celebrating our Associates on our 20th anniversary (EN \/ CN, 16:9)\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/jIDXGkr-rz0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>We treat them as our friends, and I hope they see us the same way thanks to our \u2018guest first\u2019 ethos.\u00a0 For example, after heavy rain, some customers\u2019 vehicles were flooded.\u00a0 Our Associates didn\u2019t hesitate to walk into the water to help the customers.\u00a0 On another occasion, our Lexus salesperson wrapped up a vehicle and sent it to the home of the customer, so they could present it to their daughter as a birthday gift.\u00a0 Or there is the \u2018Abdul Latif Jameel Caf\u00e9\u2019 that we host every month in Chengdu.\u00a0 This is when we stay open late into the evening to allow customers to bring their cars to us after they have finished work.\u00a0 As well as servicing their car while they are here, we give them a delicious hot meal cooked by our chefs.\u00a0 Our \u2018caf\u00e9\u2019 was even highlighted on a local restaurant app for the quality of the food!<\/p>\n<h2>How important is it for you to invest in recruiting and retaining the best people to continue your success in China?<\/h2>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignright size-full wp-image-112369\" src=\"https:\/\/media.alj.com\/app\/uploads\/2024\/01\/Picture6.jpg\" alt=\"The Toyota Way\" width=\"202\" height=\"202\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2024\/01\/Picture6.jpg 202w, https:\/\/media.alj.com\/app\/uploads\/2024\/01\/Picture6-150x150.jpg 150w, https:\/\/media.alj.com\/app\/uploads\/2024\/01\/Picture6-200x200.jpg 200w, https:\/\/media.alj.com\/app\/uploads\/2024\/01\/Picture6-170x170.jpg 170w, https:\/\/media.alj.com\/app\/uploads\/2024\/01\/Picture6-70x70.jpg 70w\" sizes=\"(max-width: 202px) 100vw, 202px\" \/>The success of Abdul Latif Jameel China depends on the dedication of our Associates.\u00a0 Every associate is fully respected, not only in terms of they are treated \u2013 with respect, friendliness consideration \u2013 but also in terms of their career development within Abdul Latif Jameel.\u00a0 We arrange systematic training to help them develop their careers and we provide new employee training to help them get to know the Abdul Latif Jameel way and how we expect them to behave.<\/p>\n<p>This includes <a href=\"https:\/\/alj.com\/en\/perspective\/principles-of-success-how-the-jameel-principles-aim-to-enhance-corporate-culture\/\">The Jameel Principles<\/a>, The Toyota Way and specific pre-job and on the job training.<\/p>\n<p>Associates always receive guidance and feedback from their direct line manager, who acts as their mentor.\u00a0 Salespeople, service advisors, technicians and dealership management receive professional training from the OEM and primary distributors.<\/p>\n<p>When vacancies arise, we always try and promote from within where possible.\u00a0 All the current management at Abdul Latif Jameel China have developed in this way.\u00a0 Our Associates really are considered \u2018family\u2019, based on 25 years of mutual respect, trust and responsibility.<\/p>\n<p><iframe loading=\"lazy\" title=\"Abdul Latif Jameel Motors China 25th Anniversary - speaking with George Wang (EN VO Subs)\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/otVGdS6D8pM?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h2>How does the Chinese market differ from markets in the Middle East or Europe?<\/h2>\n<p>China is the biggest car market in the world and total passenger car sales reached 22 million units in 2023.\u00a0 The NEV market is developing extremely fast, with sales reaching 36% penetration and 36% year-on-year growth in 2023.<\/p>\n<p>Chinese brands \u2013 especially new brands \u2013 are very strong in their NEV offer, while legacy international brands, at the moment at least, have a weaker NEV proposition, so the market share of Chinese brands is increasing and overtaking international brands.<\/p>\n<p>China is a huge country, with 9.6 million square km and a 1.4 billion population across 34 provincial-level provinces and numerous cities.\u00a0 Each province or city has its own regulations, for example, there is a limit on the number of internal combustion engine (ICE) registrations in Shanghai, but no limit for NEVs, which has helped to drive NEVs to a 49% market share in the city.<\/p>\n<h2>How hard is it for non-Chinese brands to be successful in China?<\/h2>\n<p>Toyota\/Lexus along with other non-Chinese brands have been negatively affected by the shrinking ICE market because their current NEV portfolios are currently not as strong.\u00a0 This has led to an incredibly competitive market and significant downwards pressure on prices.\u00a0 In the short term, distributors need to subsidize dealers to maintain their success.\u00a0 In the longer term, non-Chinese brands must speed up the development of their NEV propositions and close the gap in this market.\u00a0 Toyota has already set up an electric vehicle R&amp;D Centre in Changshu, for example, which should help deliver longer term success in the market.<\/p>\n<h2>What trends and developments are driving change in the Chinese mobility market?<\/h2>\n<p>The plug-in hybrid electric vehicles (PHEV) market in China expanded by 83% in 2023, while electric vehicles (EVs) grew by 21%.\u00a0 This suggests that an increasing number of customers are preferring PHEVs to EVs. \u00a0Smart cars and autonomous vehicles, which bring a totally new driving experience, are also becoming a very hot selling point, and I\u2019m sure this market will also experience further growth over the coming years.<\/p>\n<h2>Is the market ready for further growth in electric vehicles, in terms of infrastructure or government support, for example?<\/h2>\n<p>The Chinese government has done a lot to support NEVs in terms of both subsidies and infrastructure, such as charging points. \u00a0However, cash subsidies for NEVs came to an end in 2023 and purchase tax deduction will decrease from 2023, completely stopping by 2027.<\/p>\n<p>Instead, the momentum behind NEVs has shifted from government support to customer preference.\u00a0 As long as the superior customer experience with NEVs continues, especially with features like intelligent functions, they will never come back to ICE.\u00a0 NEVs will continue to grow, and PHEVs will grow faster than EVs because there is no range anxiety with a PHEV.<\/p>\n<h2>What are you plans for further growth of Abdul Latif Jameel Motors?<\/h2>\n<p>We are ready for further growth!\u00a0 With 25 years\u2019 experience in China, the strong reputation Abdul Latif Jameel China has earned over that time, the trust of more than 270,000 customers (and growing!), and a professional, dedicated, and loyal Chinese team, we look forward to continuing our partnership with Toyota and Lexus, as we explore new business opportunities and strive for an even better next 25 years.<\/p>\n<h2>What does the future hold for the automotive market in China?<\/h2>\n<p>Total vehicle sales exceeded 30 million units (including 5.2 million export) in 2023. \u00a0Both domestic and foreign markets have room for further growth.\u00a0 Some experts forecast sales of 40 million units in the near future.<\/p>\n<p>At the same time, we expect to see further consolidation in the market.\u00a0 There are roughly 90 Chinese brands in the NEV market and competition is fierce.\u00a0 Wima and Skyline went bankrupt last year, for example, while Hiphi stopped production and sales at the beginning of 2023. \u00a0More will follow and only the strongest brands will survive for the longer term.<\/p>\n<p>For Abdul Latif Jameel, our partnership with Chinese brands outside China has already begun with the appointment of <a href=\"https:\/\/alj.com\/en\/news\/mg-motor-enters-new-market-signing-distribution-agreement-with-jameel-motors-for-morocco\/\">Jameel Motors Morocco<\/a> as the distributor for <a href=\"https:\/\/www.mg-maroc.com\/\">MG Motor<\/a> (a SAIC brand), Jameel Motors Egypt as the distributor for <a href=\"https:\/\/gacmotoreg.com\/\">GAC Motor<\/a> and also with <a href=\"https:\/\/www.googleadservices.com\/pagead\/aclk?sa=L&amp;ai=DChcSEwjh5M3Vn5SFAxURi4MHHY_JBBUYABAAGgJlZg&amp;ase=2&amp;gclid=CjwKCAjwh4-wBhB3EiwAeJsppIHdIRkyHYaJc8CbIB1IOBgJ9BM-aV64bGgni6rcnntHzJcMlAmzjhoCCqEQAvD_BwE&amp;ohost=www.google.com&amp;cid=CAESV-D21cCwVrDpQZ3TeM3gwkRRsoE6WY2ZeetghgW42cgNRcISDpxxCD3g4nqkIi4Lzoo_2rKi3asQRP3ng0oTHwgrYL57RNUf-ITLBj-OrT0wkuCY6nafpA&amp;sig=AOD64_05Fqnrz_mQ1mfGkGjlJdpTLjqX2w&amp;q&amp;nis=4&amp;adurl&amp;ved=2ahUKEwjBh8fVn5SFAxUA_rsIHa3_BmgQ0Qx6BAgFEAE\">BYD<\/a> in T\u00fcrkiye \u2013 so the future looks very 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