The PwC network's China automotive value pools study projects that the market size in China will double by 2030, reaching over USD 4.5 trillion, with one in four vehicles sold worldwide being in China. The total size of automotive value pools in China is expected to mushroom, with much of the increase in revenue attributed to disruptive trends such as digitalization and electromobility. Financial services represent one automotive value pool that will expand rapidly, with annual consumer spending set to increase by USD 853 billion to reach a total of USD 1.3 trillion by 2030. Chinese start-ups are shaking up the market, hungrily chasing new value pools and challenging the way things are done. Global incumbents are under increasing economic pressure, and non-Chinese players must increasingly be making strategic investments in the Chinese market. They have three options: going it alone, strategically partnering, or investing. The study highlights the importance of being mindful of exposure to geopolitical risk in China.
