Japan’s Toyota second, followed by Germany’s Volkswagen and South Korea’s Hyundai.
Tesla is the most “future-ready” carmaker, while its Chinese competitor BYD has made the most progress in enhancing its resilience, according to an index compiled by a top business school.
Elon Musk’s electric vehicle (EV) company ranked first for readiness to navigate future crises for a fourth consecutive year, while Shenzhen-based BYD climbed nine places to fifth spot, according to the rankings released by the Swiss-based International Institute for Management Development (IMD) on Wednesday.
BYD’s local EV rivals XPeng, Li Auto and Nio ranked 12, 14, and 18, respectively.
The index, which has been compiled annually since 2010, bases its results on a combination of financial fundamentals, investors’ expectations of future growth, business diversity, employee diversity, research and development, early results of innovation efforts, and cash and debt.
International growth
Howard Yu, the author of the index, said Chinese firms would have to look beyond the local market to maintain their growth in the years ahead.
“Zero COVID lockdowns in China presents a near-term challenge,” Yu told Al Jazeera. “In the long run, Chinese companies — that are future ready — must seek international growth. If they are earning foreign exchange substantially, they are in a more favourable position.”
“BYD is a great example, as 40 percent of its revenue comes from the international market; and diversification of market risk is an important element of a successful strategy,” Yu said.
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