Automotive industry is bound to experience restructuring

Competition in the car industry is bound to intensify. For example, in a room, everyone eats together, there are only limited dishes and the number of tables is fixed. Suddenly the door opens, and a large group of new people enter. The competition is certain to be intensified. And in a certain period of time, there will be some irrational competition. The high-speed transformation of the auto industry will also produce a variety of uncertainties. In the process of high-quality development, the automotive industry is bound to experience a wave of restructuring.

China's new energy vehicle production and sales became the world's first for the ninth consecutive year, which of course is thanks to the key support at the national level, the rapid development in new energy models and the rise in intelligent network. The mature development of related industries and supply chains has also provided the necessary prerequisites for the entry of more new manufacturers, contributing to fierce competition of China's modern automotive industry.

According to statistics, as of the end of 2023, there are 442 new energy brands registered in the Chinese automobile market. But not all of them are in high quality and comprehensive development. Among the 442 new energy brands, 143 brands sold only one car in the whole year of their last year retail sales, and only more than 50 brands sold more than 10,000 cars via retail sales. It is impossible for all of these 400 companies to exist in the market in the future.