Firstly, local partners are crucial for gaining a thorough understanding of the target market. Local experts can assist companies in conducting necessary research and paperwork, helping them understand the laws, regulations, standards, and practices that need to be understood in this country or region.
In addition, there are significant differences in culture and employment environment among different markets. Salary levels, benefits, unions, or other specific demands may bring various challenges. Even if the target market is not far geographically from the local market, it may still be relatively far culturally. Therefore, if the market entry plan chosen by car companies includes a large number of local labor or is greatly influenced by target market personnel, it becomes necessary to hire local partners.