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A brutal elimination round is reshaping the world’s biggest market for electric cars

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A “life and death race” has begun to unfold in the world’s largest market for electric vehicles. Many players won’t reach the finish line.

A “life and death race” has begun to unfold in the world’s largest market for electric vehicles . Chinese EV makers showing off their newest models at Auto China, which kicks off in Beijing on Thursday, have enjoyed generous support from the government for years, with some growing rapidly to become global players. BYD, for example, is now vying with Tesla for leadership of the battery electric vehicle market.

In 2023, the average profit margin for China’s auto industry slid to 5%, the lowest level in at least a decade, according to data from the China Association of Auto Manufacturers . Too many players Overcrowding is another major issue plaguing China’s EV industry. The NDRC expects more than 110 new NEV models to be launched this year, adding to a flood of EVs hitting the market. For 2024, BYD, Huawei’s Aito and Li Auto alone are planning to increase deliveries by 2.

 

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