by The Chinese Electric Vehicle Market: Who Will Survive?
The Chinese electric vehicle market is experiencing rapid development, but not all manufacturers will be able to stay afloat. According to 2024 data, 129 companies producing new energy vehicles (NEVs) were operating in China. However, forecasts by the consulting firm AlixPartners suggest that by 2030, only 15 brands will remain financially stable.
Currently, only three companies – BYD, Li Auto, and Seres Group – are demonstrating profitability. Others, such as Zeekr, Xpeng, and Leapmotor, are approaching this level. However, fierce competition and constant innovation make the market extremely unstable.
Market Consolidation and Government Support
Back in 2018, there were over 500 companies in China planning to produce electric vehicles. The majority of them failed to start mass production. According to AlixPartners expert Stephen Dyer:
“The Chinese NEV market is one of the most competitive in the world. It is experiencing a fierce price war, and the pace of innovation is constantly increasing. Such an environment fosters technological breakthroughs but complicates achieving stable profits.”
Experts also note that some local governments may continue to support unprofitable companies to preserve jobs. This could slow down the industry consolidation process over the next five years.
Despite all the difficulties, Chinese manufacturers continue to lead the global electric vehicle revolution. Their experience in scaling production and reducing costs could become a key factor in the global battle for markets. This is especially true for BYD, which has already surpassed Tesla in sales volume in some segments.
