In China, only 15 EV brands out of currently 129 will be financially viable by 2030, AlixPartners says
Posted by Straight_Ad2258
In China, only 15 EV brands out of currently 129 will be financially viable by 2030, AlixPartners says
Posted by Straight_Ad2258
7 Comments
that’s kind of the dark side of the Chinese market: production overcapacity is insane
China had the capacity to produce nearly 50 million light duty vehicles, in the context of global sales of 91 million, and domestic sales of around 28 million
**this is great for the consumer, as there is a giant price war not only among EVs but among ICE cars too**
from a recent Cleantechnica article :wow
https://preview.redd.it/1esouvw4wgef1.png?width=968&format=png&auto=webp&s=838c7cd7b9c09d48c969490a4ca6564c12a51871
but its catastrophic news for car companies, many whom will be priced out of the market, force to close ,sell factories to competition, merge or be acquired by the big guys
milions of jobs will likely be lost
wonder if local governments will have the guts to tolerate their local champions going under and the job losses and tax losses associated with it
Chinese EV market is doomed to see 90% of brands vanish, because economies of scale keep going on even after carmakers hit 1 million sales per year
going back to Econ101, its likely that the lowest average total cost is achieved at something like 3-5 million unit sales per year
https://preview.redd.it/77nvtitrxgef1.jpeg?width=714&format=pjpg&auto=webp&s=20e1aa62443fcadbbd45cec6ab96c4bb4b304a34
I think everyone sees this on horizon. They have a huge overcapacity. Only the fittest 10-20(?) will survive the war but those that do will probably be the dominant global EV companies going forward. The winners are likely going to totally outclass the EV tech of the west and the other asian companies
how many of these brands are like real brands and not like some arbitrary subbrand ? like there is Audi and i believe audi launched a subbrand called AUDI in china
That’s ducking scary the remaining 15 will be hyper competitive
Get ready to learn free marketese buddy.
Isnt this what creative destruction looks like?