德勤-從海外到全球化的飛躍 The leap from going overseas to globalization - The 2nd growth curve for Chinese OEMs

Theleapfromgoing

overseastoglobalization

The2ndgrowthcurve

forChineseOEMs

冊子/報告標題|章節(jié)標題

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Theleapfromgoingoverseastoglobalization|Contents

02

Contents

RecentachievementsinChineseOEMglobalization03

FeaturesandtrendsinChineseOEMglobalization05

Targetmarkets:Enterthemostvaluableglobalmarkets,withEurope

andNorthAmericathe“must-wins”05

Positioningstrategy:Buildhighly-recognizedhigh-endbrandsand

concentrateonspecificsegmentsincludingNEVsincompetition07

Operatingmodel:Flexiblychoosesalesandservicemodeland

createvaluethroughlocalizedinnovation08

KeysuccessfactorsforChineseOEMglobalization10

KSF1:Customizeexpansionpathbasedonglobalizationgoaland

positioning10

KSF2:Enhancebrandawarenesswithlocalizedoperationand

serviceinnovation12

KSF3:Accelerateexpansionwithcooperativeecosystemandglobal

supplychain13

KSF4:Empowerglobalbusinesswithorganizationanddigital

capabilities14

Keyinsights15

Authors16

Theleapfromgoingoverseastoglobalization|RecentachievementsinChineseOEMglobalization

RecentachievementsinChineseOEMglobalization

ChineseOEMshavemadebreakthroughachievementsinglobalmarketsoverrecentyears,expandingtheirgeographicfootprint,enrichingtheirproductmix,andgraduallydevelopingglobalvaluechains.In2021,Chinaexported2.015millionvehicles1,doublethepreviousyear’slevel.

?Geographicfootprint:BesidesexpandingtheiradvantagesinexistingmarketssuchasSouthAsia,SouthAmerica,EasternEurope,andtheMiddleEast,ChineseOEMshavestartedtoboostsalesinmanynewmarkets,includingWesternandNorthernEuropeandOceania,particularlydevelopedcountrieslikeAustralia,Belgium,andtheUK.

?Productmix:ChineseOEMsarecoveringtheICE2andNEV3segmentswithawidevarietyofproducts.Forexample,SAICMotorexportsaround25carmodelsfromfull-sizeSUVstosedans,andNIOhaslaunchedtheES8overseas,whichisahigh-endBEV4benchmarkedagainstBBA5.

?Valuechain:ChineseOEMshavegraduallyestablishedvaluechainsoverseas.SAIC,asapioneerofglobalization,hasbuiltfullcapabilitiesabroad,coveringR&D,manufacturing,unitsandpartssupply,internationallogistics,andfinance.

Thegiantleapfrom“productexport”to“valuechainglobalization”inthepast10yearshasbeendrivenbythethreekeyfactorsofpolicy,market,andcapability.

?Preferentialpolicy:Manycountrieshaveintroducedinitiativesandpoliciesincludingconsumersubsidies,taxincentives,andemissionsregulationtoencourageNEVadoption.Theyalsoprovideclearlawsandinstructions,whichmakeiteasierforforeignOEMstolaunchproducts.

?Marketdemand:Theoverseasautomotivemarkethasgreatpotentialforsales.InadditiontomostEuropeancountries,whichhaveemergingdemandforNEVs,developingeconomiesincludingIndiaandIndonesiaarealsoseeingrapidmarketgrowth.

?OEMcapability:Withfirst-moveradvantagesintechnologyandproductdesign,especiallyinbatteries,connectivity,autonomousdriving,andintelligentcockpits,ChineseOEMsarebecomingmorecompetitiveintheglobalmarket.RichexperienceinnewretailtransformationandbusinessinnovationalsohelpsOEMsstandoutevenindeveloped

countries.

1.DataSource:MinistryofCommerceofthePeople’sRepublicofChina,withexportvolumeofaround163,000unitsfromTeslaincluded

2.ICE:InternalCombustionEngine

3.NEV:NewEnergyVehicle

4.BEV:BatteryElectricVehicle

5.BBA:BMW,Mercedes-Benz,Audi

03

04

MarketDemand

Preferential

policy

Theleapfromgoingoverseastoglobalization|FeaturesandtrendsinChineseOEMglobalization

Figure1:KeyDriversofChineseOEMGlobalization

%ofOEMrespondents

prioritizingeachglobalizationdriver

87.5%

87.5%

87.5%

62.5%

12.5%

12.5%

Fast-mover

advantage

Growingproductdesign

Leadinginbusinessmodel

Overseas

markethas

Domestic

marketgrowth

Preferential

industry

intechnology

capabilityinnovation

greatpotentialisslowing

policy

Ableto

Ableto

Ableto

OpportunitytoNeedtoovercome

Accelerateand

export

exportexportbusiness

enteroverseasdomesticmarket

protectOEM

technology

product

OEMCapability

model

marketslimitations

globalization

100%

80%

60%

40%

20%

0%

Theleapfromgoingoverseastoglobalization|RecentachievementsinChineseOEMglobalization

FeaturesandtrendsinChineseOEMglobalization

Standingonthecuspofanewera,ChineseOEMshavebecomemoreambitiousanddeterminedtoglobalize.Toseizenewgrowthopportunities,upgradetheirbrandimage,andcontinuouslyenhanceadvantagesthroughglobalcompetition,theseOEMshaveaggressivetargetmarketsselection,positioningstrategydesign,andoperatingmodelinnovation.

Targetmarkets:

Enterthemostvaluableglobalmarkets,withEuropeandNorthAmericathe“must-wins”

Whenchoosingstrategicmarketsoverseas,tradepoliciesandlocalregulations,whichcanmakeorbreakamarketentry,arethetopconsiderationsfor75%ofOEMs.Furthermore,morethanhalfofChineseOEMsgivemoreweighttomarketattractivenessfactorsincludingmarketsize,maturity,andgrowthpotential,butarelessconcernedaboutinvestmentbudget,brandawareness,andotherentrybarriers.Thisisdrivenbytheirconfidenceintechnology,products,andbranding,andtheirambitiousvisiontobeglobalcompaniesinthenewera.

Withtheaboveconsiderations,manyOEMshaverisentotheoccasionandtargetedglobalcoremarketsincludingNorthAmericaandEurope,whichhavehugedemandandhighmaturity,ratherthanfocusonlyonlessdevelopedmarketsastheyusedto.In2021,ChineseOEMsdoubledtheirsalesinmanydevelopedEuropeancountries,especiallyinBelgium,wherepeopleboughtaround110,000Chinesecars,representingamorethan400%yearlyincrease.6Oursurveyfoundthat100%ofOEMsplantoenterGermany,France,oranothermajorEuropeanmarketinthecoming3-5years,and75%ofOEMsaredeterminedtoexporttoNorthAmerica.Byenteringthemostcompetitivemarkets,OEMsareseekingendorsementoftheirbrandsandtoenhancetheircapabilitiesinproducts,services,andtechnology.

6.DataSource:ChinaAutomobileDealersAssociation

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06

Theleapfromgoingoverseastoglobalization|FeaturesandtrendsinChineseOEMglobalization

Figure2:TargetoverseasmarketsofChineseOEMsinthenext3-5years

%ofOEMrespondents

Tier1

100%

75%

Central/Western/SouthEurope

NorthAmerica

e.g.Germany,France

e.g.US,Canada

Tier2

50%

50%

38%

38%

SoutheastAsia/SouthAsia

Oceania

NorthernEurope

SouthAmerica

e.g.India,Indonesia

e.g.Australia,NewZealand

e.g.Norway,Sweden

e.g.Brazil,Argentina

Tier3

25%

25%

13%

EastEurope

Mid-East/Africa

Japan/Korea

e.g.Russia,Turkey

e.g.SaudiArabia,Egypt,SouthAfrica

07

87.5%

Theleapfromgoingoverseastoglobalization|FeaturesandtrendsinChineseOEMglobalization

Positioningstrategy:

Buildhighly-recognizedhigh-endbrandsandconcentrateonspecificsegmentsincludingNEVsincompetition

“Premiumization”hasbecomeanimportanttrendforChineseautomotivebrandsoverrecentyears.Withtheirambitiontoentermaturemarkets,mostChineseOEMsaretryingtobanishthereputationfor“cost-effectiveandaffordablecars”andestablishnewbrandimagestogainabrandpremiumandimproveprofitabilityabroad.Somestartups,e.g.NIO,focusedonluxurysegmentsfromthestarttobuildhigh-endbrands.TraditionalOEMstendtohavetwostrategies:thosealreadywithabrandadvantageoverseasoftencoverhigh-endmarketsbyexpandingtheirproductmixundertheexistingbrand,suchasSAICusingtheMGbrand;whileotherOEMspromotenewhigh-endbrandsindevelopedcountries,withGeelylaunchingLynk&CoandDFM7introducingitsVOYAHbrandinEurope.

Withstronglocalrivalsoverseasandincreasinglyfiercecompetition,evenintheNEVmarket,moreOEMshavechosentofocusonspecificsegments,createseveralhot-sellingproducts,andpositionthemselves

uniquely.Accordingtothesurvey,50%ofOEMsplantoconcentrateonspecificcarmodelsorcustomersegmentsinoverseasmarketoverthenext3-5years.ForOEMsatanearlystageofglobalizationwithlimitedresourcestoinvest,prioritizingcertainsegmentscanbuildabrandquicklyandopenupnewmarkets.GWM8Havalisagoodexample,focusingontheglobalSUVmarketandbecomingthesegment’smarketleaderinmanycountries.

GivenChineseOEMsfast-moveradvantage,competingintheNEVmarketisclearlyatoppriority.WithfavorablepoliciesencouragingNEVadoptioninmanycountries,ChineseOEMshaveacceleratedmodelintroductionsandlaunchedseveralcompetitiveNEVproductswithintelligentfunctions.InEurope,BYDlaunchedtheTangEVandHongqilaunchedtheE-HS9,bothflagshipBEVs.Inthesurvey,87.5%ofOEMssaidtheywillfocusmainlyonNEVsinoverseasmarketsinthenext3-5years.

Figure3:OverseasproductfocusofChineseOEMsinthenext3-5years

%ofOEMrespondents

100%

12.5%

0.0%

80%

60%

40%

20%

0%

NEV

FocusmainlyonNEVswithintelligent

functionsinoverseasmarkets

7.DFM:DongfengMotorGroup

8.GWM:GreatWallMotor

ICE

FocusmainlyonICEvehicles

inoverseasmarkets

NEVandICE

FocusonNEVandICEvehiclesinoverseasmarketwithequalimportance

08

self-build&

self-operate

12.5%

25.0%

62.5%

12.5%

25.0%

12.5%

50.0%

Cooperatewithlocal

Theleapfromgoingoverseastoglobalization|FeaturesandtrendsinChineseOEMglobalization

Operatingmodel:

Flexiblychoosesalesandservicemodelandcreatevaluethroughlocalizedinnovation

RatherthanracingtotransformtoadirectsalesoragencysalesmodelinChina,OEMsmainlyadoptgeneralagencyanddealershipmodelsoverseastoopenupthemarketinaquicker,asset-lightway,althoughtheyarealsoexploringamoreflexiblecombinationofretailmodelsindifferentregions.MostOEMswillcontinuetorelyondealerstovaryingdegreesinthenext3-5years,giventhetightscheduleforenteringnewmarkets,difficultiesinbuildingchannels,andthereturnoninvestment.Somestartupsthataremoreflexible,suchasNIOandXPeng,havealreadyadoptedadirectsalesmodelinEuropeforlong-termexperienceandbrandingconsiderations.

Alongsidesales,ChineseOEMsalsouseinnovativecustomerservicesasanimportantdifferentiatortothriveinnewmarkets.Basedondomesticexperience,OEMsseektoprovidehigh-quality,end-to-endservicesthroughouttheuserlifecycletoimprovecustomerexperience.Morethan60%ofsurveyedOEMswilllaunch

subscriptionservicesandfinancialleasingservicesabroadtolowerthebarforcustomerpurchasesandincreasemarketexposure.SomeNEVOEMsfocusonchargingandaftersalesservices.Forexample,NIOplanstointroduceBaaSsolutions,mobilityservices,anddoor-to-doorpick-upanddeliveryservicesinNorwaytoimprovesatisfactionandcreatenewvalueforcustomers.

Forsalesandaftersalesservices,closecollaborationwiththelocalindustryecosystemisimportanttobuildupcapabilitiesoverseas.Thesurveyfound87%ofChineseOEMswillcooperatewithlocalpartners,includingdealers,agents,andserviceproviders,insales,and75%willdosoinaftersalesservices.OverseasOEMscanfullyleveragetheconsumerinsights,localresources,andmarketpoweroftheirlocalpartnersduringcooperation.Forexample,Aiwayshaspartneredwithtopdealersandserviceprovidersinmorethan10countriesinEuropetoexpanditslocaladvantages.

Figure4:PreferredsalesandaftersalesbusinessmodelofChineseOEMsinoverseasmarketinthenext3-5years

%ofOEMrespondents

SalesModel

Directsales&

self-build

Cooperatewithlocal

dealersoragents

Agent-baseddirectsalesmodelHybridsalesmodel

Puredirectsalesmodel

Dealershipmodel

AftersalesModel

aftersalesservicepartners

Self-buildaftersalesservicesystemPartnerwithlocaldealerPartnerwithlocalaftersalesserviceprovider

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Theleapfromgoingoverseastoglobalization|FeaturesandtrendsinChineseOEMglobalization

Despitepromisingprospectsandambitiousgoals,ChineseOEMsstillfacechallengesinglobalization.Inadequatesupplysystems,lackoffundamentalcapabilities,insufficientlocalmarketresources,limitedbrandadvantages,andproductandtechnologydrawbacksarecommonpainpointsforChineseOEMs,hinderingtheirglobalization.Towininglobalcompetition,OEMsneedtoclarifytheirgoals,adopttherightmarketstrategy,givefullplaytotheirstrengths,andmakeanefforttofillcapabilitygapsquickly.

Figure5:GlobalizationchallengesforChineseOEMs

%ofOEMrespondentsfacingeachchallenge

Inadequate

supplysystem

1.1Imperfectsupplychainandservicenetwork,leadingtountimelyresponsetocustomerneeds

63%

Lackof

fundamental

capabilities

2.1Lowefficiencyinorganizationcollaboration,unclearR&Rsplitandalackofglobaltalent

63%

2.2Lackofresearchandprojectmanagementcapabilityforcross-borderinvestmentprojects

25%

2.3ITanddigitalcapabilitydevelopmentcannotkeeppacewithglobalbusinessexpansion

25%

Insufficientlocalmarketresources

3.1Unabletobuildgoodrelationshipwithlocalgovernment,media,andindustryassociations

50%

3.2Insufficientknowledgeoflocalregulation,finance,riskcontrol,andlegalrequirements

38%

3.3Limitedunderstandingofcustomersandcompetition,makingithardtodevelopstrategy

13%

Limitedbrandadvantages

4.1LowacceptanceofChinesebrandsbyoverseascustomers,makingithardtoopenupthemarket

4.2“Costeffectiveness”asthemajorbrandimage,makingithardtoimproveprofitability

38%

38%

Product&

technology

5.1Productortechnologydoesnotmeetlocalstandards,andadaptionisdifficultorcostly

product

25%

Theleapfromgoingoverseastoglobalization|KeysuccessfactorsforChineseOEMglobalization

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KeysuccessfactorsforChineseOEMglobalization

Basedonpastprojectexperienceandindustryinsights,DeloittehassummarizedfourKeySuccessFactors(KSFs)forOEMstodefinetheirglobalizationgoalsandobjectives,developstrategiesandroadmaps,andachievesustainableoverseasgrowth.

KSF1:Customizeexpansionpathbasedonglobalizationgoalandpositioning

Duetodifferencesinmarketdemandandlimitstocompanies’capacity,itishardforChineseOEMstoenterEuropeanandNorthAmericanmarketsovernight.Otherthanexpandingblindly,OEMsneedtocustomizetheirownpathways.Guidedbylong-termgoalsandbrandpositioning,OEMsshouldcomprehensivelyassesseachmarket’scharacteristicsandtheircompanyresources,designanoverallmarketexpansionstrategy,path,andrhythm,clarifykeymarketsateachstage,andgraduallyexpandtheirglobalfootprints.

?Overseasexpansionpath:Themarketexpansionpathshouldconformtoacompany’slong-termglobalizationstrategy,andbeadjusteddynamicallyalongwithoverseasbusinessdevelopment.Torealizethevisionofa“globalcompany”,OEMscanconsidertwostrategies,"fromdifficulttoeasy"and"fromeasytodifficult"whendesigningtheirinternationalexpansionpaths.

Toyotachose"fromdifficulttoeasy",andfocusedonmaturemarketswithhighentrybarriersattheearlystagesofglobalization,toimprovecapabilityquicklyandthenreplicatethisinothermarkets.ItsexperienceintheUSallowedToyotatoenterallkindsofmarketswithgreatease.Incontrast,Hyundaiadoptedasafer"easytodifficult"strategy,firstsellingcarstomarketswithfewbarriersandlower-enddemand,whereitalreadyhadadvantages,includingAfrica,SouthAmerica,andotherdevelopingregions,andthengraduallyenteringmaturemarketsinEuropeandNorthAmerica.

?Overseasmarketassessment:Theglobalautomotivemarketiscomplex,withrecentblackswaneventssuchasRussia-UkraineconflictandtheCOVID-19pandemiccreatingevenmoreuncertainties.Toexpandglobally,OEMsneedtodesignanoverallmarketentryroadmap,andcarefullyplanandrevisetheirstrategicallyprioritizedmarketsandnewmarketstoenterateachdevelopmentstage.Marketattractiveness,difficultyofentry,andcompany-marketmatcharethreesuggestedfactorstoevaluateinselectingsuitabletargetmarkets.

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C

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M

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Company-marketMatch

MarketAttractiveness

Competition

LandscapePoliticalEnvironment

TradePolicies

any-market

y

MarketSize

GeographicAdvantage

ResourceMatch

MarketGrowth

NEVPenetration

ProductMatch

StrategicMatch

TechnologyBarrier

Theleapfromgoingoverseastoglobalization|KeysuccessfactorsforChineseOEMglobalization

Figure6:Suggestedcriteriaforoverseasmarketevaluation

DifficultyofEntry

MarketSize:Prioritizecountrieswithlargesalese.g.Germany,France

MarketGrowth:Prioritizecountrieswithrapidgrowthe.g.India,Brazil

NEVPenetration:PrioritizecountrieswithhighNEVpenetration

e.g.Norway,Sweden

GeographicAdvantage:Prioritizecountrieswithgeographicproximitytoandconnectionwithmultiplemajormarketse.g.Turkey,Mexico

StrategicMatch:Prioritizeacountryifitsmarketcharacteristicsmatchshortorlong-termstrategicobjectives

ProductMatch:Prioritizea

country’sifmarketdemand

matchesproducts

ResourceMatch:PrioritizeifOEMhaslocalresourcesinacountry,includinggovernmentrelations,businessfoundations,industrynetwork,andcooperation

PoliticalEnvironment:Considercountrieswithhighriskofpoliticalstabilitycarefullye.g.Iran,Pakistan

TradePolicies:Prioritizecountrieswithtradeadvantagese.g.ASEANcountries

CompetitionLandscape:Prioritizecountrieswithfragmentedmarketcompetitionandfewdominantlocalplayerse.g.Belgium,theNetherlands

TechnologyBarrier:PrioritizecountrieswhereitiseasyforOEMstomeetlawsandregulations,technicalstandards,andproductrequirements

e.g.mostdevelopingcountries

Atthebeginningofitsoverseasexpansion,SAIC’smajorgoalwastoboostsales,anditprioritizedregionswithagreatproductmatchandlowpoliticalandtradebarrierstoentry,includingSoutheastAsia,theMiddleEast,andLatinAmerica.Conversely,to"buildahigh-endbrandimage",NIOselectedEurope–withitslargemarket,highNEVpenetration,intensecompetition,andleadershipinglobalqualitystandards–asitsmajortargetmarket.

Theleapfromgoingoverseastoglobalization|KeysuccessfactorsforChineseOEMglobalization

KSF2:Enhancebrandawarenesswithlocalizedoperationandserviceinnovation

Havingestablishedclearpositioningandtheirregionalmarketfocus,OEMsneedthentobuildupconsumerawarenessandbrandimagethroughlocalizedmarketing.Furthermore,theyneedtoadjustsalesmodelandserviceinnovation,makingthesemoresuitableandvalue-orientedtobuildanestablishedbrandreputationinoverseasmarkets.

?Localizedbrandmarketing:Inadoptingahigh-endbrandinganddifferentiationstrategy,OEMsneedtoaddresshowtoeffectivelycommunicatetheirbrandconceptsandvaluepropositionstooverseasaudiences.

Enhancingbrandacceptanceandbuildingcustomertrustisparticularlycrucialinmaturemarkets.Basedonourobservations,successfulglobalOEMsdowell

?Salesmodelandservices:Salesmodelandcustomerservicesareessentialforlong-termdevelopmentoverseas.Insteadofrelyingentirelyondistributors,traditionalOEMsshouldbeinvolvedmoreinsaleschanneldevelopmentandmanagementintheirstrategicmarketstoincreaseinteractionwithcustomersandimprovethecustomerexperience.Startupsthatareadeptatdirectsalesneedlocalizedmodeladjustmentandflexibleadoptionofvariousmodelstobalancelong-termandshort-termROI.Moreover,OEMsshouldbetterunderstandlocalconsumerpreferencestoprovidemorevaluable,innovativeservices.

TakingintoaccountthecharacteristicsoftheEuropean

ininterpretingandcommunicatingtheirbrandconnotationsandfullyleveraginglocalchannelsandeventsformarketing.

DFMVOYAHemphasizestheChineseculturalconnotationsofitsbrandinEurope,advertisingChineseelementsinitscardesignandexhibitingteaartandChinesescreensinofflineVOYAHspacestobuildauniquebrandimage.Aiways,meanwhile,isfullylocalizedintermsofmarketingchannelsandcontent.InIsrael,itlaunchedacreativeshortvideocampaignthroughmainstreamlocalsocialmediaincludingTwitter,Facebook,andInstagramtostrengthenbrandawareness.

market,Lynk&Cohasadoptedadirectsalesmodelandcreatedaseriesofhigh-qualitycustomerservices,includingbrandedaftersalesservicewithVolvo’snetwork,innovativeservicessuchascarsubscriptionsandsharedrides,andbrandmembershipactivities.ThiscombinationofbusinessmodelandserviceinnovationhasburnishedLynk&Co’sbrandrecognitionandreputationinEuropeanmarkets.

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Theleapfromgoingoverseastoglobalization|KeysuccessfactorsforChineseOEMglobalization

KSF3:Accelerateexpansionwithcooperativeecosystemandglobalsupplychain

Toachievetheirgrandblueprintof"becomingaglobalenterprise",exportingproductsandestablishingabrandarejustthefirststeps.ChineseOEMsneedtobuildoverseascapabilitythroughoutthevaluechainthroughinternalmechanismsandexternalcooperation.Intheshortterm,OEMscanfocusonbuildingandstrengtheningtheirlocalcooperativeecosystems,whileinthelongruntheymustbuildanoverseasvaluechainoftheirown.

?Localcooperativeecosystem:Togrowtheirbusinessesoverseas,OEMscannotavoidbuildingcooperativeecosystems.Besidesconventionalcooperationinsalesandaftersales,OEMstodayshouldpaymoreattentiontolocalcollaborationinnewservicesandexperiencesduringcaruse,creatingbetterexperiencesinconnectivity,charging,andautonomousdrivingservicesandmeetinglocaldemandandstandards.Duringcooperationoverseas,OEMsneedtoflexiblyadjusttheirapproaches,designanefficientpartnerselectionandmanagementframework,andexplorea"1+1>2"synergisticeffectcooperationmodel.

InSoutheastAsia,Oceania,andmanyothermarkets,

facilitiesandenhanceconvenienceforusers.IncountriesincludingRussiaandBangladesh,GWMandlocaldistributorshelda"SurpriseService"aftersalestourtoimprovecustomersatisfaction.

?Globalvaluechain:Inthelongterm,OEMsmustalsoconsiderestablishingR&Dcenters,vehicleandpartsfactories,logistics,andotherfacilitiesoverseastorespondswiftlytolocalmarketneeds,improveproduction,reducecosts,andoptimizeresourceallocation.Valuechainlayouthasaprofoundimpactonoverseasbusiness,soOEMsmustcarefullyanalyzelocalsupplyanddemandcharacteristics,includingmarketsize,industrymaturity,currentproductioncapacitydistribution,tradepolicies,andlogisticscosts.

Inmanufacturing,mostforeignOEMslocatetheirmajorNorthAmericanproductioncapacityintheUS,withitslargemarketandmatureindustry,toimproveproductqualityandbrandimage.Meanwhile,theyhavegraduallyexpandedproductionofsomelower-endmodelstoMexicotoobtaincostadvantages.InEurope,wheremarketsaremorediverseandfragmented,OEMsadoptvaried

SAICpartnerswithDutchmapserviceproviderHERETechnologiestoprovidemapandconnectivityservicesforitsMGbrand.InEurope,NIOhaspartneredwithPlugsurfing,thelargestlocalchargingnetworkcompany,toprovideaccesstomorethan20,000publiccharging

productionstrategies.HyundaiproducesonlyinCentralandEasternEuropetoserveallEuropeanmarketsatthelowestcost,whileFordandNissanaremoremarket-orientedandlocatetheirmajorcapacityinWesternEurope.

Theleapfromgoingoverseastoglobalization|KeysuccessfactorsforChineseOEMglobalization

KSF4:Empowerglobalbusinesswithorganizationanddigitalcapabilities

Alongwithglobalexpansion,businessandmanagementisbecomingmorecomplex,withdatavolumeand

systemrequirementsgrowingexponentially.Toenhancecompetitiveness,OEMsneedtobuildneworganizationalstructures,mechanisms,anddigitalcapabilitiesthatareinlinewiththeirglobalbusinessgoals.

?Organizationalstructureandcollaborationmechanism:Theseareimportantinbusinessimplementation.AsOEMsestablishentitiesoverseas,itcreatesanewchallengeofhowtodefinestrategicrolesandjobdivisionsbetweenheadquartersandregionalcompanies.OEMsshould"letthosewhocanhearthesoundofthegunmakedecisions"anddelegatedecision-makingpowertocoreoverseasteams(e.g.sales,channels,andservices),whilestrengtheningtheroleofheadquartersinproductdesignandback-officefunctionstobetterintegrateresourcesandempowertheiroverseasbusiness.

Torespondquicklytomarketchangeoverseas,SAIChasitsinternationalbusinessdepartmentreportdirectlytotheCEOandauthorizesitsbranchesinstrategic