Time for foreign carmakers to review their China partnerships

It’s the Lunar New Year holiday across Asia next week, and a time when some of my single friends in China are anxious about visits to their hometowns. Many families traditionally use the opportunity to quiz unattached children about their marriage prospects.

From earlier this month those requirements, which initially limited overseas auto giants to a 50% stake in the partnerships, have been removed — giving all overseas producers the same kind of freedoms that were previously granted only to a tiny handful of firms, including Tesla. The undercurrent to those discussions will be the weak performance of the ventures in the country’s world-beating electric market. While the list of China’s top 10 sellers of all passenger vehicles, including combustion engine cars, features seven of the foreign-local ventures, only one — SAIC-GM-Wuling, the producer of the wildly popular Hongguang Mini, a compact four-seater — ranks among the major electric leaders.

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