Yes, management has often mentioned the risks from Chinese OEMs. The Chinese government has invested heavily in the EV industry over the past decade, building a strong ecosystem.
As a long-term investor, I’m buying more of KPIT Technologies at this level. This is based on my own risk tolerance and belief that the EU will not let its OEMs struggle too much. I think the EU will put measures in place to slow down the entry of Chinese OEMs.
If Chinese OEMs keep entering the EU at this rate, it could cause issues for other large auto companies in the future. The EU wouldn’t want to see large-scale job losses in its own markets.
The US, the world’s largest auto market, has already put a 100% tariff on Chinese EVs. So, I don’t see this situation as a major “Going Concern” issue for KPIT Technologies.
Personally, I’m okay with taking on industry risks, while company-specific risks are harder to manage.
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