Some industry experts point out that the automotive manufacturing industry is a capital-intensive sector and cannot do without huge capital investment. From building factories, purchasing equipment to developing new technologies, especially during the current critical period of accelerating the transformation towards electrification and intelligence, the investment required by enterprises is astronomical.

Take Volkswagen Group as an example. In recent years, it has continuously invested a huge amount of money in transformation. In March this year, Volkswagen launched a new plan of 170 billion euros for the period from 2025 to 2029, mainly used to promote new product research and development, strengthen battery business, and improve the platform for pure electric vehicle models, etc. Ford Motor’s high debt is also regarded by the industry as the expensive tuition it has paid for its electrification transformation.