BYD Warns Nearly 100 Chinese EV Makers Could Disappear Amid Market Shake-Up

BYD has warned that China’s overcrowded EV industry is heading for a dramatic shake-up, with nearly 100 carmakers at risk of being forced out of the market.

The warning comes after Beijing’s recent ban on aggressive discount tactics, which previously fueled a wave of price wars across the sector.

Speaking at the Munich Motor Show, Stella Li, executive vice-president of BYD, said the country’s car market had grown unsustainably crowded, with more than 130 companies competing for market share. “Even 20 OEMs is too much,” she remarked, adding that the new restrictions on discounting would accelerate consolidation.

According to consulting firm AlixPartners, just 15 of the 129 EV and hybrid brands operating in China in 2024 are expected to remain financially viable by 2030. Rival carmaker Xpeng has previously forecast that the global auto industry could shrink to just 10 players over the same period.

The shift away from price wars is expected to redirect customer attention to technology, driving experience, and product quality. While this may benefit stronger players such as BYD, even leading companies face challenges.

Amid pressures at home, Chinese automakers are increasingly looking overseas. BYD is moving forward with plans to build cars in Hungary, while other groups such as Changan and Leapmotor are exploring partnerships and production in Europe. However, higher labor and energy costs in the region, combined with new EU tariffs, complicate those expansion plans.

For China’s EV market, which has long relied on subsidies and cheap pricing to drive demand, the era of consolidation appears unavoidable.