In the fierce competition of the Chinese automotive industry, He Xiaopeng, the CEO of Xpeng, made an astonishing statement that he believes only seven major Chinese car manufacturers will survive in the next decade.
Despite the large number of Chinese car manufacturers currently, it is this overwhelming number that makes him pessimistic about the future of many companies. He pointed out that most Chinese auto manufacturers will disappear in the next decade. He elaborated that out of the 300 emerging auto companies in the past, only 100 have survived, and now less than 50 are still operational, with only 40 actually selling cars each year. He added that in the future, only seven companies will remain, but he did not specify the names of these seven successful companies.
This is not the first time He Xiaopeng has sounded the alarm about the fierce competition in the Chinese auto industry. He previously mentioned that in the next three to four years, the Chinese electric vehicle market will face severe competition, resulting in many companies being eliminated, leaving only the largest firms, akin to a knockout system in sports.
He stated that by 2030, the companies that will survive will rely on "unique capabilities" to continue existing. He remarked, "The automotive industry is like a marathon, not a sprint."
Stephen Dyer, an auto consultant at AlixPartners, indicated earlier that in 2023, 123 brands sold at least one electric vehicle in mainland China. Chinese automakers like BYD are also striving to conquer the global electric vehicle market.\n\nAccording to data collected by technology company ABI Research for BI, Chinese automakers accounted for 70% of the electric vehicle market in Thailand and 88% in Brazil in the first quarter of this year. In last month's third-quarter earnings report, BYD surpassed Tesla for the first time in electric vehicle sales revenue.
2 / 1
