China’s EV Wars Intensify: Over 100 Makers Could Exit Market
China’s electric vehicle (EV) industry is going through some serious turbulence. With the government cracking down on aggressive discounting, experts predict that over 100 smaller EV makers may not survive the next few years.
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A Market Too Crowded
BYD’s executive vice-president, Stella Li, spoke at the Munich Motor Show, pointing out that too many companies are trying to survive by slashing prices, which is causing deflation across the sector. “Even 20 OEMs is too much,” she said. Without the ability to heavily discount their cars, many smaller manufacturers could be pushed out of the market entirely.
Consultancy AlixPartners predicts that of the 129 EV manufacturers active in 2024, only about 15 will still be financially healthy in five years. This crackdown is essentially forcing the market to trim down to the strongest and most stable players.
BYD Gains Ground Against Tesla
Steve Beattie, BYD UK’s sales and marketing director, said, “In the past two years, BYD has grown tremendously. We want to offer high-tech, high-value cars to UK customers, and it’s great to see more people choosing BYD.”
So far this year, 22,574 BYD vehicles have been registered in the UK — a huge 515% jump compared to last year. Tesla still leads with 23,708 registrations, but BYD is catching up fast.