While Western automakers are well aware of the competitive threat from fast-moving, aggressively-priced Chinese EVs, many Chinese EV brands are also feeling intense pressure from their domestic competitors. Experts predict that only 1 in 7 of today's firms will still be making money by 2030.
Alixpartners reports that the fierce price war in China's domestic market, ongoing for the past few years, shows no signs of abating. Dominant firms like BYD have the margins to continually lower prices, squeezing out competitors with thinner margins who are compelled to cut their prices to remain competitive.
This brutal price war has already claimed casualties, such as WM Motor, which filed for bankruptcy in 2023, and many more are expected to follow. Analysts forecast that unprofitable brands will either exit the industry or pivot to capturing a minor market share, according to Bloomberg.
Meanwhile, companies like BYD and Tesla are expected to strengthen their market positions. Alixpartners' experts predict that Chinese automakers will command 33 percent of the global car market by 2030.
Source: Bloomberg
