The successive explosions of some domestically produced electric vehicles such as AIWAYS and WM Motor have made the market more and more convinced thatDomestic electric vehicles will usher in a wave of consolidation that will eventually leave only a handful of large automakers.In the past 10 years, China has experienced an investment boom in electric vehicles, with a large number of electric vehicle brands emerging. While some Chinese electric carmakers such as BYD, Li Auto and NIO are becoming household names, others face an uncertain future.
According to statistics from business research company MarkLines, China currently has about 50 domestic electric vehicle brands, which produce pure electric vehicles and plug-in hybrid vehicles. However, UBS analyst Paul Gong said that by 2030, there will be only 10 to 12 large Chinese automakers left that can achieve large-scale operations.
Since Tesla launched a price war in China at the end of last year,The pace of industry consolidation has accelerated.WM Motor told creditors last week that it had launched bankruptcy reorganization procedures in early October. Shen Hui, chairman and CEO of WM Motor, was also rumored to have run away. AIWAYS, a Shanghai-based electric vehicle startup, had bright prospects when it was founded in 2017, but it has not yet achieved profitability six years later. The factory has stopped production and cannot pay employees.
“Price reduction has become the new normal in China’s automobile market, and this trend will continue.Until the small car companies are eliminated"After these small car manufacturers are eliminated, only a small part of their production capacity will be acquired and reused by other car companies, and most of it will be completely wasted," said Zhang Xiang, a visiting professor at Huanghe University of Science and Technology. "
The question now is,As the price war continues, what will happen to other automakers?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."