The successive explosions of some domestic electric vehicles such as AIWAYS and WM Motor made the market more and more convinced that domestic electric vehicles will usher in a wave of consolidation, and in the end only a few large-scale electric vehicles will be left. Automobile manufacturers.
Over the past decade, China has experienced an investment boom in electric vehicles, resulting in the emergence of a large number of electric vehicle brands. While some Chinese electric carmakers such as BYD, Li Auto and NIO are becoming household names, others face an uncertain future.
China currently has about 50 domestic EV brands that produce both pure electric vehicles and plug-in hybrids, according to data compiled by business research firm MarkLines. However, UBS analyst Paul Gong said that by 2030, only 10 to 12 large Chinese automakers will be able to operate at scale.
Monthly sales comparison of domestic automobile brands
Since Tesla launched a price war in China late last year, the pace of industry consolidation has accelerated. WM Motor told creditors last week that it had launched bankruptcy reorganization proceedings in early October. Shen Hui, chairman and CEO of WM Motor, has also been rumored to have run away. Shanghai electric car startup AIWAYS had bright prospects when it was founded in 2017, but six years later it has still not achieved profitability, with factories halted and unable to pay employees.
“Price cuts have become the new normal in China’s auto market, and this trend will continue until small car companies are eliminated,” said Zhang Xiang, a visiting professor at Huanghe University of Science and Technology. “After these small car manufacturers are eliminated, only a small number of The capacity will be acquired and reused by other car companies, and most of it will be completely wasted.”
The question now is, what will happen to other automakers as the price war continues? How much money will they invest before this reshuffle comes? Professor Zhang Xiang of the Yellow River Institute of Science and Technology said: “Technology is advancing rapidly… The automobile production lines built four or five years ago no longer have much practical value.”
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