For all the talk of China¡¯s car industry being crowded with low-volume brands that struggle to turn a profit, the potential to carve out a share of the world¡¯s biggest auto market is still proving irresistible for new entrants.
Whether with in-car kitchens or plans to take on one of the world¡¯s fastest supercars, Chinese companies are still betting they can offer vehicles that are unique and innovative enough to build businesses around. That¡¯s despite a gloomy medium-term outlook as competition intensifies and Beijing reins in the sprawling industry. AlixPartners estimates that by 2030, just 15 of the 129 brands in China that sell electric and plug-in hybrid vehicles will be financially viable.
While that points to significant consolidation in the sector as an aggressive price war squeezes automakers, suppliers and dealers, it¡¯s also an opportunity for companies that can fulfill niche demands. Instead of scrutinizing fuel economy, Chinese drivers are increasingly eyeing models with novel add-ons or luxury cars that sell for far less than a legacy Western marque.
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