Global automakers can't afford to retreat from China if they want to compete with it: Automobility Limited CEO
Bill, you brought up Toyota, so this is probably, you know, if you’ll be Y DS giving Tesla a run for its money in new energy. Toyota is one of the the old school sort of legacy players that are trying to keep 1 foot in the door, right? So record profits. We like that. We didn’t like their guide down 20% and they’re saying, look it’s only because we’re investing in the future in E VS and also in AI. So it’s telling the market what it wants to hear. At the same time though, we know. Toyota’s game plan is, look, the transition, it’s going to happen. It’s going to take a while to get there. So we’re not putting all our bets on EV. We’ve got hybrids going. We were, we actually still even believe in hydrogen. Does that sound like a a solid game plan to you or do they really need to step on the gas and focus on EVs? Oh, absolutely. First of all, don’t you know party too early on getting drunk off the profits of your current product portfolio. As China has indicated and the consumers have now responded. EVs are the future and you have to be relevant in that lane. If you’re going to stay competitive and be glow and international global company, which Toyota and the other Japanese brands are, you have to be present in the world’s largest market and especially as the companies from China. Increase their footprint in the overseas markets. Many of those markets today dominated by Japanese brands. So investing the profits that you’re making today in tomorrow’s technology, you must do that, even if in the near term it means you’re going to take some hits on profitability and you’re going to probably, you know, swim in a very red ocean with competition bill the only way you’re going to meet that competition. If you have competitive products, if I may, then if I can clarify what you’re saying, are you are you suggesting A tactical withdrawal from China by some of these global car makers would benefit them? No, just no. Just the opposite that that if you’re going to compete with China, you must be present in the market, know how to meet that competition because they’re going to go global. If retreat’s not a strategy, retreat is basically giving up a beachhead from which they will then attack you. So being present in China, collaborating in some form with the supply chain that’s here, maybe even investing in some of the partnerships needed to build that supply chain, that’s a better strategy than retreating?