Business case

Navigating China’s market: entry strategies for a European automotive giant

Situation: Strategy and business changes
Strategy

Context

Our client, a European tier-1 automotive supplier, sought strategic advice on the optimal market entry approach for China, considering both greenfield investments and M&A scenarios. Its objectives included evaluating potential entry strategies, selecting the ideal factory location, negotiating the establishment of a wholly owned subsidiary with Chinese authorities and supporting the initial phases of the new company’s operations in China.

Key Takeaway

Thanks to our analyses, we were able to recommend the greenfield approach as the most viable entry scenario. We identified and facilitated the selection of optimal factory sites and supported negotiations with authorities for the establishment of our client’s China subsidiary.

Accuracy Role

We provided comprehensive recommendations for market entry by analysing China’s regulatory environment, supply chain dynamics and geopolitical risks, and our evaluation of province attractiveness considered factors like geography, macroeconomics and foreign investment climates. After identifying potential sites, we ranked them and conducted site visits for deeper analysis. We then facilitated negotiations with local authorities for subsidiary setup, provided legal support for business licensing and assisted our client with initial operational needs like expatriate work permits.

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