Cars.com’s 2025 Automotive Trends report highlights a complex market shaped by high prices, increasing affordable options, and evolving definitions of “American-made” vehicles.
– Persistent Challenges:
New-car prices remain high at $49,000, despite interest rate cuts.
High loan delinquencies and declining used-car values complicate affordability.
– Positive Developments:
Inventory of new cars under $30,000 grew by 42% in 2024, offering hope for budget-conscious buyers.
Used EV prices dropped sharply, improving accessibility for cost-conscious consumers.
– Evolving Market Dynamics:
The definition of “American-made” is shifting, driven by domestic EV battery production and foreign automakers’ U.S.-based operations.
Hybrids are gaining traction, appealing to buyers seeking a balance between gas and electric vehicles.
While 2025 poses challenges, growing inventories, improved affordability in some segments, and new tools for shoppers provide opportunities for navigating the automotive landscape.
Experts in the Automotive Industry Asia
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Expanding your business into Asia, particularly China, can be challenging if you’re unfamiliar with local business customs. In China, Guanxi—the intricate network of personal and professional relationships—is crucial for success. But what exactly is Guanxi, and how can you build and handle it effectively? We’ll answer these questions and more as we support you throughout your international expansion strategy.
What is Guanxi?
Guanxi is the cornerstone of business relationships in China and a fundamental concept in Chinese society. While it can be loosely translated as “network,” “relationship,” or “circle,” its deeper meaning refers to the web of “involved relationships” that link individuals. Essentially, Guanxi encompasses everything related to personal and professional connections.
For Europeans, the concept of Guanxi can be challenging to grasp, as it blends business and personal ties—something that contrasts with the more distinct separation between work and personal life in Europe.
In practice, Guanxi functions like a trusted contact book, but with a key difference: it is made up of people you can rely on. It’s a system that allows you to tap into your network for support, particularly in business, where connections are often the key to success.
The Role of Guanxi in an Outsourcing Strategy
In Chinese business culture, trust and belonging form the foundation of relationships. Building guanxi—a network of trusted connections—requires time, but once established, it becomes a powerful tool. Chinese partners, bound by guanxi, are often willing to provide extensive support.
This system reinforces hierarchical roles, fostering trust and exclusivity in business dealings. For instance, businesses may avoid entering markets already occupied by others out of respect for established relationships.
Additionally, Guanxi helps prevent public humiliation by resolving issues discreetly. When challenges arise, Chinese individuals and businesses prefer to consult their Guanxi network rather than risk public embarrassment.
At its core, Guanxi operates as an exchange of favors. It involves offering a favor at one time, with the expectation of receiving a service of greater value in the future. This asymmetrical dynamic sustains and strengthens the relationship, as providing a greater return ensures the bond remains active. Conversely, failing to honor this norm can lead to social exclusion. Guanxi is not a permanent commitment but requires consistent effort to maintain.
At its core, guanxi operates as an exchange of favors—a service offered today is repaid with a greater favor in the future, maintaining and strengthening the relationship. However, guanxi requires ongoing effort to sustain. Neglecting this social norm risks severing the relationship, and failing to reciprocate appropriately can lead to exclusion from the network.
For companies, guanxi is a strategic asset. A strong network, especially one that includes investors, can significantly push business growth. Chinese investors are active participants in these networks and often share valuable insights on platforms like Zhihu, a popular social media platform for exchanging knowledge. Cultivating and leveraging Guanxi can, therefore, offer a competitive edge in navigating the complexities of the Chinese market.
How to Build Guanxi
Establishing Guanxi begins with forming a foundation of trust, which must be both absolute and mutual. Entry into a Guanxi network typically requires sponsorship from a trusted third party who can introduce you to key individuals. This trust transcends simple professional relationships, as all parties involved commit to a mutually beneficial, win-win collaboration. The principle of reciprocity is central to building and sustaining Guanxi, where both sides make consistent efforts to maintain a stable relationship.
Steps to Establish Guanxi
Participate in Events and Gatherings
Joining external events, such as business lunches or networking functions, is an effective way to initiate Guanxi. These settings provide an opportunity to learn and adhere to cultural norms, such as bringing a thoughtful gift and presenting it with proper etiquette. Observing these rules demonstrates respect and leaves a positive impression.
Respect Cultural Norms
Understanding and respecting Chinese habits and social norms are critical. For example:
Toasting Etiquette: During a toast, the position of your glass reflects respect. When toasting with someone of higher rank, ensure your glass is slightly lower than theirs.
Nonverbal Communication: Avoid raising your voice or gesturing excessively when expressing opinions, as these actions are considered impolite and may harm your reputation.
Adaptability
Being adaptable is essential, particularly when interacting with individuals of higher status. Demonstrating cultural sensitivity and adjusting your behavior to align with social norms will help you foster strong relationships.
Word of Mouth
Recommendations and introductions through word of mouth are powerful tools for expanding Guanxi. In Chinese culture, trusted endorsements carry significant weight and can open doors to valuable connections.
Incorporating Guanxi into Your Presentation
Feature People: Include photos of colleagues, clients, or teams you’ve collaborated with to showcase your relationships and emphasize a spirit of cooperation.
Share Experiences: Highlight images from events, milestones, or gatherings to create a personal, relatable narrative.
Recognize Partners: Display logos of partner companies and images of key clients or suppliers to show respect and appreciation for the network supporting your business.
The Economic Benefits of Guanxi
When built and maintained effectively, Guanxi becomes a strategic asset that can enhance both business growth and career development. A strong Guanxi network can save time, provide access to resources, and serve as a catalyst for long-term success.
In particular, having an investor within your Guanxi network is highly advantageous. Investors not only provide financial backing but also lend credibility and support, making business development smoother and more efficient.
Respecting cultural norms, committing to reciprocity, and engaging actively in meaningful interactions are key to building a robust Guanxi, which can offer significant personal and professional advantages.
If you have further questions, or suggestions, or would like to discuss more about cross-cultural presentations, feel free to reach out. Let’s learn together and make each presentation a step toward genuine connection and successful collaboration. If you want to learn more about our sales initiatives in Asia, Europe, and BRICS countries for your products as well as our open posts as an expert in your field, please write us at [email protected].
Experts in the Automotive Industry Asia
You need one, but don`t want to hire one permanently?
He is an experienced Interim Operations Manager with extensive expertise in the automotive industry. His career is characterized by strategic thinking and operational excellence. He specializes in change management and process optimization.
Base on special knowledges, such as Strategy and deploy management, KPI management, Lean management, Quality management, Project management, Time management, Leadership management, etc., combined his working experience and lesson learned, always led and supported many clients to achieve the target(s) successfully, include but not limited:
Optimize operational efficacy
Optimize supply chain management
Improve productivity and quality performance in plant
Improve ability of R&D for New product/project
Improve ability of management system and work team
Meanwhile, according development tendency of Industry 4.0/China 2025, he always studies that how to implement enterprise transformation efficiently. On the basis of expectations and reality, support them become more lean or more automation or more intelligence.
Volkswagen ATJ, Tianjin VR China Head of Product Technology, Quality Assurance (2018-2020) Head of Quality Assurance, Purchased Parts DL382 (2011-2018) Managed 25 employees. Fault analysis and product optimization.
Volkswagen ATD, Dalian VR China Head of Heat-Treating Department (2020-2021). Responsible for 250 employees. Process optimization and quality assurance. Led the Task Force Japan.
Liebherr MCCtec GmbH Team Leader, Strategic Purchasing (2022-2023). Focus on outsourcing to Asian suppliers, supplier management, material group, and procurement strategies
Strategic Thinking: Development and implementation of corporate strategies focused on long-term goals and sustainable growth while aligning operations with business objectives and anticipating market trends.
Team Leadership: Experience in leading large teams, with a focus on fostering talent and promoting employee development, while ensuring alignment with organizational goals.
Process Optimization: Ongoing improvement of workflows to boost efficiency, productivity, and cost-effectiveness, ensuring smoother operations and greater overall performance
Expert in Cost optimization, Automation, Logistics, Industrial Design, Plant planning, and Relocation of Production. Marketing, Market research Quality, Supplier selection, Supplier development
Today, effective production without appropriate logistics is unthinkable. A key part of this is fully automated warehouses, which provide a constant, timely update on the current inventory and link it with suppliers and customers, an essential tool for production and supplier planning.
Effective solutions for manufacturing, production and logistics are essential to survive in tougher competition. But also the right choice of production location and marketing. The optimization of products and/or new product development is another component in order to survive on the market.
Highly efficient production with optimal use of resources and equipment. High availability with intelligent material flow and sophisticated storage technology. Integration of customers and suppliers into an intelligent control system of all production flow system
Base on special knowledges, such as Strategy and deploy management, KPI management, Lean management, Quality management, Project management, Time management, Leadership management, etc., combined his working experience and lesson learned, always led and supported many clients to achieve the target(s) successfully, include but not limited:
Optimize operational efficacy
Optimize supply chain management
Reduce waste and inefficient operation, resource and material usage
Improve productivity and quality performance in plant
Improve ability of R&D for New product/project
Improve ability of management system and work team
Meanwhile, according development tendency of Industry 4.0/China 2025, he always studies that how to implement enterprise transformation efficiently. On the basis of expectations and reality, support them become more lean or more automation or more intelligence.
Automotive, Ceramics, Chemistry, Cosmetics, Construction, Construction material, Electronic part manufacturing, EV Battery, Food &Beverage, Home appliance, Logistics, Manufacturing, New energy, Packaging, Pharmacy, Plastics. Quality / Validation, Testing / Validation, Textile, Built up, Relocation, etc.
Steel structure; Factory and production hall; Automation; Conveyor – / Transfer systems; Material flow; Handling/Robotics; Testing Equipment; Packaging; Special machines; Warehouse Systems, (Fully automatic); Process development; Quality assurance; Supplier qualification, etc.
Product / Process / Production / Quality-Validation / Costs / ROI
Product to mass production batch series production large series production mass production
Equipment Human resources
Marketing, Sales
Industries: Automotive Ceramics Chemistry Cosmetics Construction material Electronic part manufacturing EV Battery Food &Beverage Home appliance Logistics Manufacturing New energy Packaging Pharmacy Plastics Quality / Validation Testing / Validation Textile
Product evaluation / optimization regarding production
Process evaluation / optimization Production evaluation / optimization
Warehouse/Logistics evaluation /optimization
Organization evaluation / Optimization
Total concept: Cost reduction, Quality improvement, Investment, Financing, ROI Expert in Logistics, Industrial Design, Automation, and Installation / Relocation in China/Asia
The general approach is based on common methods such as: 6 Sigma,(DMAIC), Lean Management ,Theorie of Constraints (TOC), Customer Relationship Management (CRM), Benchmarking, Supply Chain….
Basically, the analysis of the product / services and the processes is the starting point for optimizing costs and improving performance and achieving quality goals
More than 30 years of experience develop, design of automation systems and and logistics systems.
Working as consutant and problem solver for many stock market registered companies, by example BMW, VW, Great Wall, etc.
During the years developing many solutions, which several of them had been patented.
Increase output while less costs and less resources and raise quality and reducation of waste
a. Product portfolio analysis (products, dimensions, weights, etc.) b. Throughput analysis c. Space analysis d. Material flow analysis e. Incl. delivery and collection areas f. Information flow analysis g. Logistics solution: concept development based on 1-6 h. Detailed solution i. Supplier selection j. Installation k. Implementation including commissioning and connection to the l. internal IT system Integration of customers and suppliers into the logistics system
Broad experience in a wide range of industries, technologies and processes. Transfer of technologies and processes from other industries and combination to create the optimal technology/process for the respective project. Extremely strong cost awareness.
Lean/TPS apply more areas (office management, R&D, production/shop flow, logistic, etc.)
Buffer warehouse between part production and assemblyEfficency +80%, Cost reduction- 60%, Lead time -60%, Personnel reduction -70%, Downtime assembly: -80%, Quality control: +80%
Trouble shooting Bodyshop. Ensure SOP. Support of suppliers such as Thyssen, FFT, and others. Modification at all essential stations, like body, door sill, sunroof, door, etc. so that the systems could run at all.Tolerance chain calculation, quality methods, quality calculations, redesign of cells and equipment
Strong background in design, manufacturing, production technology and organization. This allows me to identify and eliminate weak points very quickly. Broad experience in various industries and able to transfer the technologies/processes to other industries.
Extremely strong cost awareness.
based on the known methods, such as
Quality Management System (IATF16949) / Production Management System (Lean/CI)
Strategic and Deployment
Project Management
Process Optimize Management (VDA6.3/Lean process)
Lean/TPS Management (include administer / R&D / manufacture /logistical)
Supply Chain Management
Industry 4.0
Nationality: German Residence: Shenyang, China Position: Owner Year of Birth: 1962 Languages: German, English, basics at French
The global auto industry is undergoing a revolution, significantly driven by the rapid advancement of Chinese automakers. These companies dominate electric motor production and excel in integrating high-efficiency systems and digital features into vehicles. Chinese EVs, like Tesla, focus on innovative digital components, including autonomous driving, virtual reality, and multiple high-resolution dashboard screens. The term “digital bling” captures this trend.
Chinese automakers are ahead in the EV supply chain, emphasizing software and new features over hardware. For example, JiYue offers a saloon controlled by voice commands and touch screens, while Nio provides augmented reality glasses and advanced autonomous driving systems. Electronics and digital technology now constitute over 40% of a vehicle’s cost, projected to reach 45% by 2030.
Xiaomi’s entry into the EV market, with its SU7 model, showcases rapid innovation, competing with Tesla’s Model 3 by offering advanced autonomy and a lower price. Xiaomi’s success stems from fast-follower techniques and leveraging China’s dynamic supply chain. Tesla’s “gigacasting” process for manufacturing is also being adopted and innovated by Chinese companies like Nio and XPeng.
Chinese EV makers benefit from strategic partnerships with Western firms and government policies that foster technological development. These collaborations enhance local market understanding and technological advancements, positioning China as a leader in the global EV market. Source: itif.org
Experts in the Automotive Industry Asia
You need one, but don`t want to hire one permanently?
Recent data reveals a notable expansion in China’s automobile sales and production, particularly in the electric vehicle (EV) sector, during the first quarter of 2024 amidst escalating tensions with Western nations regarding industry support policies.
According to the China Association of Automobile Manufacturers, auto sales in China surged by 10.6% to reach 6.72 million vehicles in the initial quarter of the year. State-run Xinhua News Agency, citing association figures, reported a 6.4% year-on-year increase in the country’s auto output to 6.6 million units during the same period.
The production of new-energy vehicles (NEVs) demonstrated significant growth, soaring by 28% compared to the previous year to reach 2.1 million units. NEV sales also experienced a substantial increase of nearly 32%, totaling 2.09 million units. China, already the largest auto exporter globally, witnessed a 33% rise in overseas shipments to 1.32 million units in the first quarter.
In response to criticism from the U.S. and Europe alleging excess EV capacity due to China’s industrial policies, Xinhua defended China’s position, stating that such accusations were unfounded. The commentary emphasized that claims of overcapacity in China’s EV industry were baseless, despite remarks from U.S. Treasury Secretary Janet Yellen during her recent visit to the country regarding artificially low-priced Chinese goods.
While China’s economy, the world’s second-largest, has faced challenges in returning to pre-pandemic growth levels, concerns have arisen over government support favoring supply chains over consumer spending. This has led to apprehensions about potential export subsidies in the automotive and green energy sectors.
Experts in the Automotive Industry Asia
You need one, but don`t want to hire one permanently?
James. Lu has more than 10 years factory working experience from engineer to manager, and 10+ years’ experience as a professional management consultant in enterprise management, include Electrical and Electronic, Automotive, Mechanical Engineering, Home Appliances, Communications, Building and Construction, etc.
Base on special knowledges, such as Strategy and deploy management, KPI management, Lean management, Quality management, Project management, Time management, Leadership management, etc., combined his working experience and lesson learned, always led and supported many clients to achieve the target(s) successfully, include but not limited:
Optimize operational efficacy
Optimize supply chain management
Improve productivity and quality performance in plant
Improve ability of R&D for New product/project
Improve ability of management system and work team
Meanwhile, according development tendency of Industry 4.0/China 2025, he always studies that how to implement enterprise transformation efficiently. On the basis of expectations and reality, support them become more lean or more automation or more intelligence.
Achieved 5x ROI: assisted team to achieve its annual objectives and operational cost reduction target. 11 projects that included Pull Systems, Single Minute Exchange of Die, Total Preventative Maintenance, Standard Work and Layout Optimization had executed by teams.
Trained employees with appropriate Lean methods and tools.
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