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Md Nadim Ahmed's avatar

# Questions on China's EV Market Consolidation

I've been thinking about the Chinese electric vehicle landscape and have some questions that I'd love to get perspectives on from those more knowledgeable about this sector.

Can you give me a breakdown of the financial positions of the top ten EV manufacturers in China? From what I understand, there are almost 90 EV manufacturers currently operating in the market, with many of them propped up by local government subsidies.

I'm particularly curious about the consolidation dynamics at play. Are there any mergers and acquisitions going on in this sector? If so, are these mergers being conducted privately through market forces, or are they being pushed together by the government in what might resemble shotgun marriage situations?

Looking ahead, how many Chinese EV brands do you expect to still be in the market by 2030-35? The current number seems unsustainable given the competitive pressures and market realities.

On the international front, do you see any foreign companies acquiring Chinese brands? I remember hearing about some activity along these lines a few years ago, but I'm not sure how that landscape has evolved.

Finally, there's the question of government intervention for struggling players. Do you think the Chinese government will bail out any of the EV brands that are heavily indebted, or are they going to let market forces play out and allow them to fail?

These dynamics seem crucial for understanding not just the future of China's domestic market, but also how Chinese EV companies will compete globally in the coming decade.

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Godfree Roberts's avatar

@glennluk has done that profit breakdown on X and perhaps on his Substack

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