the automotive industry. In other sectors, the gap is as big as 40 percent. Based on our project experience and benchmarking insights, we estimate that Chinese companies can replicate 50 to 80 percent of this cost gap even when producing in Western markets, depending on the industry and the structure of their value chain. But the more important question is how they from structural efficiency and disciplined management across the entire value chain. H Heavy-duty trucks show a 20-30% cost gap, mainly driven by design choices, a high local supplier share and lower operating costs In a recent project for an automotive client, we identified three main drivers of the cost of goods sold (COGs) gap. Roughly 60 percent stemmed from more cost-efficient product through wider use of cost-competitive materials. Less emphasisis placed on environmentally advanced plastics, while resources are reallocated toward features that customers value