137 Chinese electric car brands compete for the future, analysts say that by 2030, less than 1/7 will be profitable

News on July 15, with the rapid development of China’s electric vehicle industry, Western car manufacturers are facing increasingly fierce competitive pressure from the Eastern market. However, in this transformation driven by technological progress and cost-effectiveness, China's local electric vehicle brands are also in the midst of fierce domestic competition. According to the latest forecast from the authoritative organization Alixpartners, by 2030, only about one-seventh of China's electric vehicle brands will be able to break through the siege and achieve profitability targets. Currently, there are as many as 137 electric vehicle brands in the Chinese market, but according to in-depth analysis by Alixpartners, this number will undergo significant reshuffle in the next few years. Analysts pointed out that by 2030, the number of brands that can successfully gain a foothold and achieve profitability is expected to shrink to 19. Behind this prediction, it reflects the reality that China's electric vehicle market has long had fierce price wars and a harsh competitive environment. According to the editor's understanding, market leaders such as BYD, relying on their strong cost control capabilities and brand influence, continue to expand market share through price war strategies, further compressing the survival space of competitors with already narrow profit margins. This strategy forces many brands to follow the pace of price cuts in order to maintain their place in the market, but this undoubtedly intensifies the overall profitability pressure on the industry.

Competition in the electric vehicle market has intensified, and small and medium-sized brands are facing elimination

1. The impact of price wars has emerged: Brands such as WM Motor went bankrupt because they could not withstand continued losses.
2. Accelerating market elimination: Alixpartners warns that more brands may face the fate of being eliminated from the market.
3. Transformation or Exit: Unprofitable brands may exit the industry or transform to focus on market segments.

Giant companies consolidate their position and Chinese brands rise

1. Giant companies have a solid position: Big companies such as BYD and Tesla have consolidated their market position amid competition.
2. The Rise of Chinese Manufacturers: Alixpartners predicts that by 2030, Chinese automakers will account for 33% of the global auto market.

Emerging brands face huge production pressure

1. High-intensity competition: Emerging electric vehicle brands face fierce market competition and rapid product iteration requirements.
2. Amazing overtime hours: Factory workers work up to 140 hours of overtime per month, far more than traditional car manufacturers.
3. Competitive pressure and technological leadership: High-intensity competition and the pursuit of technological leadership bring huge pressure to enterprises.

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