Outlook for European Businesses in China

Outlook for European Businesses in ChinaBusiness Sentiment Among European Companies in China The European Chamber of Commerce in China’s (EUCCC) latest Business Confidence Survey reveals a year of mixed sentiments for European businesses in the wake of China’s reopening post-COVID-19. Despite the initial optimism spurred by the lifting of pandemic-related restrictions, several structural issues and regulatory challenges have tempered expectations. This article delves into the survey’s findings, shedding light on the current business climate and the outlook for European firms operating in China.Economic Challenges and Geopolitical Animosities Pressure Foreign Companies in China In 2023, European businesses in China faced significant …

India’s Potential as a Global Leader in Green Hydrogen

India’s Potential as a Global Leader in Green HydrogenGreen hydrogen (GH2) derived from renewable energy sources, is positioned as a transformative force in the global transition towards sustainable energy. India, with its ample renewable resources and commitment to decarbonization, has emerged as a significant player in this arena. Leveraging its vast solar and wind energy potential, estimated at approximately 1,400 GW, India aims to become a leader in green hydrogen production, aligning with the goals outlined in its National Hydrogen Mission launched in 2021. This mission is pivotal in achieving the country’s ambitious target of net-zero carbon emission by 2070 …

Future of EVs in India by 2030: Opportunities and Implications for Ancillary Industries

Future of EVs in India by 2030: Opportunities and Implications for Ancillary IndustriesWith over 30 years of consulting experience across Western and Eastern Europe, Asia, and the Americas, our expertise in strategy and globalization has equipped us to analyze the burgeoning electric vehicle (EV) industry. EAC has successfully executed numerous projects in the e-mobility and battery sectors, particularly in Asian growth markets and Europe. This presentation delves into the future of EVs in India by 2030 and explores the implications for ancillary industries.Current Landscape In FY 2024, EVs accounted for 1.7 million units of total vehicle sales in India. The …

Aftermath of the EV hype – permanent dip, small dent, or no crisis at all?

Aftermath of the EV hype – permanent dip, small dent, or no crisis at all?The hype surrounding electric vehicles (EVs) in recent years has been undeniable, driven by a combination of environmental consciousness, government incentives, and technological advancements. However, as the dust settles, questions arise about the sustainability of this growth momentum and the long-term viability of the EV market.The surge in demand for EVs, accelerated during the COVID-19 pandemic, painted a rosy picture of exponential growth and high expectations. Ambitious targets, such as Germany’s aim to have 15 million EVs on the road by 2030, fueled optimism for a …

India’s New EV Import Policy: A Boon for Global Manufacturers?

India’s New EV Import Policy: A Boon for Global Manufacturers?To boost India’s electric vehicle (EV) industry, the government has unveiled a new import policy, having a two-pronged approach: first, to attract investments in premium EV manufacturing. This could bring globally recognized brands and advanced technologies to India. Second, the policy aims to promote localization, encouraging the domestic production of EVs. This focus on local manufacturing protects existing Indian companies that are currently catering to the price-conscious consumer segment with affordable EVs. By creating this framework, the government hopes to foster a sustainable EV ecosystem in India, with options for both …

Challenges within the German Automotive Network

Challenges within the German Automotive NetworkThe German automotive industry, renowned for its precision engineering and collaborative spirit between manufacturers and suppliers, is facing a tumultuous period marked by rising tensions between the major automakers and their suppliers. The strained relationship has led to significant disruptions and financial losses. The situation underscores broader challenges within the industry, including heightened cost pressures, increasing complexity of vehicle components, and shifting market dynamics.At the heart of the issue lies a breakdown in the traditionally close-knit partnership between the major automakers and their suppliers. Instances of faulty or delayed components, ranging from brakes to batteries, …

QUALITY CONTROL ORDERS (QCOs) IN INDIA – ARE YOU GOING TO BE IMPACTED?

QUALITY CONTROL ORDERS (QCOs) IN INDIA – ARE YOU GOING TO BE IMPACTED?India being a leading importer of various products for years has been putting in several efforts to control the quality of products imported in India. The requirement of quality control has originated owing to inadequacy of products meeting the qualification requirements and their failures of meeting safety, reliability, and standard quality norms. Quality Control Orders (QCOs) have been introduced by Indian government for critical products impacting consumer safety and is expected to be expanded to other products soon. These QCOs have an impact on imported products as there …

German FDI Targeting China on New Heights

German FDI Targeting China on New HeightsGermany’s financial engagement with China has soared in recent years, reaching a record of approx. €12 billion in Foreign Direct Investment (FDI) from Germany to China last year, as a recent study form the German Economic Institute shows. This investment trend underscores the complexity of the relationship between the two economies, as German companies seek to capitalize on China’s vast market despite government calls to reduce dependence.Investment in China has raised concerns in Germany and across the European Union. The German government has urged large companies to reduce their reliance on China, citing the …

Quo Vadis? Snapshot of the pharmaceutical industry in Germany

Quo Vadis? Snapshot of the Pharmaceutical Industry in GermanyHigh electricity and gas costs have impeded growth in the German pharmaceutical industry. But now, for the first time in over two years, the gas price went to its level of 2021 as it went below 30 Euros per megawatt hour in March 2024. High electricity and gas prices have been hindering growth in the chemical and pharmaceutical industries as they depend highly on energy for their operations.The adoption of a comprehensive pharmaceutical strategy by the federal government in December 2023 has instilled newfound optimism among industry players, signaling a renewed commitment …

The Resurrection of Southern Europe

The Resurrection of Southern EuropeIn recent years, Southern Europe has emerged as a beacon of economic resurgence, with countries like Portugal, Greece, and Spain leading the charge. This revitalization stands in contrast to the economic landscape of Northern Europe, with robust growth rates exceeding 5% in 2022, a testament to the region’s resilience and potential. While challenges remain, particularly concerning the sustainability of the growth as well as structural impediments, the trajectory of Southern Europe’s economy offers a promising narrative of growth and transformation.One of the key drivers behind Southern Europe’s economic revival is the composition of its economy, which …

Charting China’s Course: A Journey Towards Openness

Charting China’s Course: A Journey Towards OpennessIn 2023, China witnessed a commendable growth in its Gross Domestic Product (GDP), achieving a 5.2% expansion for the year. This growth not only aligned with the government’s annual target but also showcased a robust performance, especially in the fourth quarter, where the year-on-year GDP surged to 5.3%, surpassing the 4.9% recorded in the third quarter. Despite these positive indicators, the Chinese government is gearing up to provide additional support to its economy and trade in 2024. In this EAC Executive Briefing, we will delve into the significant developments that unfolded in the latter …

Outsourcing of non-core activities to developing Innovation hubs

Outsourcing of non-core activities to developing Innovation hubs: The new Shared Services concept in practiceTo focus on core business competencies without impeding the flow of non-core activities while achieving cost efficiencies, businesses have been setting up shared services centers (SSCs) since 1980s but over the years, the model has evolved to adapt better to changing business requirements. From Shared Services Centers (SSC) to Global Competence Centers (GCC) and Global Business Services (GBS), service delivery model encompassing outsourcing, captive shared services as well as centers of excellence (COEs) for serving various business units have been the guiding pillars to offer centralized expertise …