Why Global Carmakers Can’t Afford to Give Up on China

Global carmakers have introduced a slew of models specifically for China at the Beijing Auto Show in a bid to hold their ground in the world’s largest vehicle market. While some of them may well turn out to be hits, the new localization push will not succeed in restoring international names to their former glory.

Still, they should stick with this approach. Competing domestically is essential for foreign automakers to remain relevant in the long term. As the action moves beyond China — where sales are declining — to overseas markets, the experience gained by contesting the industry’s most demanding arena will prove valuable in growth regions.