Part 7/10:

A Bloated Market: The Need for Consolidation

The evolving landscape may also usher in a wave of consolidation among automotive brands, with market commentators predicting only ten major players could remain in the vehicle manufacturing sector in a decade. This consolidation is attributed to market depletion driven by advancements in technology and changing consumer preferences, forcing companies to either adapt or face obsolescence.

Furthermore, increasing competition within China's domestic EV sector will intensify price wars, stressing profit margins and exacerbating operational challenges for many manufacturers. Analysts highlight that increasing market saturation could lead to supply overshoot, forcing smaller EV tech companies to shutter their doors if they cannot keep pace.