Opel launches the expansion announced over a year ago China on ice. In view of the current challenges for the automotive industry, it is more important than ever for Opel to focus on clear priorities, the company said on Friday when asked. “Against this backdrop, and considering the volume required to make a real impact, Opel is currently putting plans to enter the Chinese market on hold.”
However, the Rüsselsheim-based car manufacturer, which belongs to the Italian-American Stellantis group, is still preparing to enter new markets that promise good profitability even with smaller volumes.
According to the “Handelsblatt”, the background to the decision is growing geopolitical tensions between the communist leadership in China on the one hand and the United States and the European Union on the other side. Nationalist tendencies in China, the draconian zero-Covid policy and the escalation of the conflict over independence from Taiwan made it difficult for Opel to enter the world’s largest sales region, the newspaper reported, citing business circles. In addition, Opel currently lacks attractive models that differ noticeably from those of the competition in order to be really successful in China.
The carmaker announced in July last year that it would only offer electric cars in Europe from 2028. The traditional brand also wanted to enter the car market in China with the offer. Sales of electric cars are currently growing strongly in the People’s Republic.