Around 130 car manufacturers most recently frolicked on the Chinese market for electric cars – according to experts, it will be significantly less in the future. The market leader Byd About expected According to “Financial Times”
that the number of providers could shrink by about 100.
The forecast of the advisory company Alixpartners goes in a similar direction. Alixpartners estimates that in 2030 only 15 of the approximately 130 providers can work profitably. The BYD competitor Xpeng has already predicted that the global automotive industry will shrink to only ten companies over the next ten years.
The background to the foreseeable consolidation is the strong competition that is already on the car market. In China, the world’s largest market, Electric cars For the most part with considerable discounts to the customer and the customer. Practice is now a thorn in the side of politics. In this, she sees a contribution to deflational developments in the entire economy. China’s President XI Jinping (72) Personally has already denounced the methods of the country’s automotive industry in this context.
Without the opportunity to offer discounts to attract customers, “some of the manufacturers will be replaced,” said Stella Li (55), Executive Vice President of BYD, according to the “FT” on the sidelines of the Munich automotive exhibition IA. “Even 20 manufacturers are too much,” said Li.
Escape abroad
Li believes that BYD can emerge from development as a winner because the technology and driving experience of the group products would prevail. According to experts, BYD is not immune to the Chinese government’s procedure for price dumping. For the second quarter, the group reported a lower net profit and sales as expected, according to observers, according to Beijing’s approach to long -term payment habits and discounts from suppliers.
The Bank Citigroup has already reduced its forecasts for BYD’s annual sales: Instead of 5.8 million cars this year, 7.2 million next year and 8.4 million in 2027, the company will therefore only sell 4.6 million, 5.4 million and 6 million vehicles, according to the Citigroup experts. For comparison: Last year, sales were 4.3 million units.
However, BYD managers Li is not deterred and refers to the company’s expansion abroad: “I think that our profits will remain strong,” she said. “I believe that more Chinese companies will go abroad, but the foreign market is not that easy.”
Li sees BYD on schedule at business in Europe. From the end of this year, the production of vehicles in Europe is scheduled to begin in the factory in Hungary. However, the increase in production capacities will take longer than expected, according to the manager according to “FT”.