Latest news with #StephenDyer
TimesLIVE
a day ago
- Automotive
- TimesLIVE
Only 15 of China's EV brands projected to stay viable by 2030, says AlixPartners
Only 15 out of 129 brands that sell electric vehicles and plug-in hybrids in China will be financially viable by 2030 as intense competition forces consolidation and some to exit the market, consultancy AlixPartners said on Thursday. The 15 brands are projected to account for about 75% of China's EV and plug-in hybrid market by the end of the decade, each averaging annual sales of 1.02-million vehicles, AlixPartners said, without specifying brand names. However, consolidation in China is expected to proceed more slowly than in other markets, said Stephen Dyer, head of AlixPartners' automotive practice in Asia, because local governments may support non-viable brands due to their importance to regional economies, employment and supply chains. "China is one of the most competitive NEV (new energy vehicle) markets in the world, with intense price wars, rapid innovation and new entrants constantly raising the bar," Dyer said. "The environment has driven remarkable advances in technology and cost efficiency, but it has also left many companies struggling to achieve sustainable profitability." China's automotive market, the world's largest, is facing a price war and significant overcapacity which are straining profitability. Aside from BYD and Li Auto, no other publicly listed Chinese EV maker has achieved full-year profitability. Chinese regulators have called for carmakers to halt the price war. However, Dyer said it would likely continue, but through "hidden" factors such as insurance subsidies and zero interest financing rather than direct price cuts. The capacity utilisation ratio at Chinese car plants fell to an average of 50% in China last year, the lowest in a decade, pressuring profits, Dyer said.
Time of India
a day ago
- Automotive
- Time of India
Only 15 electric vehicle brands in China will be financially viable by 2030, AlixPartners says
Only 15 out of the 129 brands that currently sell electric vehicles and plug-in hybrids in China will be financially viable by 2030, as intense competition forces consolidation and some to exit the market, consultancy AlixPartners said on Thursday. These 15 brands are projected to account for approximately 75% of China's EV and plug-in hybrid market by the end of the decade, each averaging annual sales of 1.02 million vehicles, AlixPartners said, without specifying brand names. However, consolidation in China is expected to proceed more slowly than in other markets, said Stephen Dyer, head of AlixPartners' automotive practice in Asia, because local governments may support non-viable brands due to their importance to regional economies, employment and supply chains. "China is one of the most competitive NEV (new energy vehicle) markets in the world, with intense price wars, rapid innovation, and new entrants constantly raising the bar," Dyer said. "This environment has driven remarkable advances in technology and cost efficiency, but it has also left many companies struggling to achieve sustainable profitability." China's automotive market, the world's largest, is currently facing a price war and significant overcapacity, both of which are straining profitability. Aside from BYD and Li Auto, no other publicly listed Chinese EV maker has achieved full-year profitability. Chinese regulators have called for automakers to halt the price war. However, Dyer said it would likely continue, but through "hidden" factors such as insurance subsidies and zero-interest financing rather than direct price cuts. The capacity utilisation ratio at Chinese car plants fell to an average of 50% in China last year, the lowest in a decade, pressuring profits.
South China Morning Post
a day ago
- Automotive
- South China Morning Post
China's EV price war dashes profit hopes of 90% of brands, AlixPartners says
Less than 10 per cent of electric vehicle (EV) brands in China will turn a profit in the next five years, as the industry grapples with a price war and chronic overcapacity , according to AlixPartners. Advertisement 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. Advertisement 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.
Business Recorder
2 days ago
- Automotive
- Business Recorder
Only 15 electric vehicle brands in China will be financially viable by 2030, AlixPartners says
BEIJING: Only 15 out of the 129 brands that currently sell electric vehicles and plug-in hybrids in China will be financially viable by 2030, as intense competition forces consolidation and some to exit the market, consultancy AlixPartners said on Thursday. These 15 brands are projected to account for approximately 75% of China's EV and plug-in hybrid market by the end of the decade, each averaging annual sales of 1.02 million vehicles, AlixPartners said, without specifying brand names. However, consolidation in China is expected to proceed more slowly than in other markets, said Stephen Dyer, head of AlixPartners' automotive practice in Asia, because local governments may support non-viable brands due to their importance to regional economies, employment and supply chains. 'China is one of the most competitive NEV (new energy vehicle) markets in the world, with intense price wars, rapid innovation, and new entrants constantly raising the bar,' Dyer said. 'This environment has driven remarkable advances in technology and cost efficiency, but it has also left many companies struggling to achieve sustainable profitability.' China's automotive market, the world's largest, is currently facing a price war and significant overcapacity, both of which are straining profitability. Aside from BYD and Li Auto, no other publicly listed Chinese EV maker has achieved full-year profitability. Chinese regulators have called for automakers to halt the price war. However, Dyer said it would likely continue, but through 'hidden' factors such as insurance subsidies and zero-interest financing rather than direct price cuts. The capacity utilisation ratio at Chinese car plants fell to an average of 50% in China last year, the lowest in a decade, pressuring profits, Dyer said.
Zawya
2 days ago
- Automotive
- Zawya
Only 15 electric vehicle brands in China will survive by 2030, AlixPartners says
Only 15 out of the 129 brands that currently sell electric vehicles and plug-in hybrids in China will be financially viable by 2030, as intense competition forces consolidation and some to exit the market, consultancy AlixPartners said on Thursday. These 15 brands are projected to account for approximately 75% of China's EV and plug-in hybrid market by the end of the decade, each averaging annual sales of 1.02 million units, AlixPartners said, without specifying brand names. However, consolidation in China is expected to proceed more slowly than in other markets, said Stephen Dyer, head of AlixPartners' automotive practice in Asia, because local governments may continue supporting non-viable brands due to their importance to regional economies, employment and supply chains. China, the world's largest automotive market, is currently facing a price war and significant overcapacity, both of which are straining profitability. Aside from BYD and Li Auto, no other publicly listed Chinese EV makers have achieved full-year profitability. Chinese regulators have called for automakers to halt the price wars. However, Dyer said that the war would likely continue, but through "hidden" factors such as insurance subsidies and zero-interest financing rather than direct price cuts, he estimated. Capacity utilisation ratio at Chinese car plants has fallen to an average 50% in China last year, the lowest in a decade, pressuring profits, Dyer said. (Reporting by Qiaoyi Li, Zhang Yan and Brenda Goh, Editing by Louise Heavens)
