hina’s Year of the Tiger began on February 1 with the government determined to demonstrate the country’s strength and stability. So what does this overriding priority signify for China’s automobility industry in the year ahead?
Berylls can make several broad economic forecasts with reasonable confidence: China’s Producer Price Index (PPI) fell for two consecutive months at the end of 2021, suggesting that the policy of maintaining supply and price stability will continue to be effective. New construction projects increased significantly in December, adding weight to other evidence that the economy is strengthening.
At the same time, don’t expect runaway growth in 2022: the consensus among economists inside and outside China is that GDP will increase year-on-year by 5 to 6 percent. There is one last point of particular interest to carmakers. Carbon neutrality by 2060 is now a major policy priority, as China gets closer to its first national target of ensuring that rising emissions peak by 2030.
Against this background, foreign carmakers and suppliers in China confront a series of challenges and opportunities that demand answers now. They include whether China is still a safe bet for making a profit, especially for premium OEMs; what are the right price points; and whether there are any hidden gems that OEMs have overlooked. For example, we think it’s time to enter China’s rapidly expanding and increasingly mature used car market.
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Dr. Jan Burgard (1973) is CEO of Berylls Group, an international group of companies providing professional services to the automotive industry.
His responsibilities include accelerating the transformation of luxury and premium OEMs, with a particular focus on digitalization, big data, connectivity and artificial intelligence. Dr. Jan Burgard is also responsible for the implementation of digital products at Berylls and is a proven expert for the Chinese market. Dr. Jan Burgard started his career at the investment bank MAN GROUP in New York. He developed a passion for the automotive industry during stopovers at an American consultancy and as manager at a German premium manufacturer.
In October 2011, he became a founding partners of Berylls Strategy Advisors. The top management consultancy was the origin of today’s Group and continues to be the professional nucleus of the Group. After studying business administration and economics, he earned his doctorate with a thesis on virtual product development in the automotive industry.
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