China's EV price war dashes profit hopes of 90% of brands, AlixPartners says
overcapacity , according to AlixPartners.
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However, the country's top EV players were expected to double their market share in Europe to 10 per cent by 2030, the consultancy said in its latest report on the global car industry on Thursday.
Of the 129 EV brands currently produced by about 50 carmakers, only 15 were expected to become profitable by 2030, and they could account for nearly 75 per cent of the mainland's EV market, said Stephen Dyer, Greater China co-leader and head of Asia automotive practice at AlixPartners.
'China is one of the most competitive new-energy vehicle markets in the world, with intense price wars, rapid innovation and new entrants constantly raising the bar,' he said. 'This environment has driven remarkable advances in technology and cost efficiency, but it has also left many companies struggling to achieve sustainable profitability.'
10:08
How Chinese companies have pulled ahead of Tesla in the electric vehicle race
How Chinese companies have pulled ahead of Tesla in the electric vehicle race
Dyer said the number of profitable EV makers could fall to fewer than 10 by 2030 if the unrelenting discounts continue, further squeezing profit margins.
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By 2030, EVs – which comprise pure electric and plug-in hybrids – would account for 76 per cent of the mainland's new car sales, or 20 million units, AlixPartners estimated.
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