XPENG CEO predicts “elimination” of Chinese automakers and says only seven will survive the price war (Instagram @xpeng_global)
The Chinese automotive market is facing intense competition, with many electric vehicle manufacturers emerging in recent years.
XPENG’s CEO, He Xiaopeng, predicts that between 2025 and 2027, a “round of elimination” will take place, where only the strongest automakers will survive. This forecast is linked to the price war driven by the oversupply of brands and models in the market, where companies lower prices to outcompete others, often sacrificing profitability.
This situation is not new and has already been discussed by industry leaders, such as the CEO of Mercedes-Benz, who called the scenario a “Darwinian price war.” XPENG, for example, managed to significantly increase its sales in 2024, reaching over 190,000 units for the year, almost half of them in the last quarter. However, the quest for profitability remains a common challenge among Chinese automakers.
According to Xiaopeng, of the hundreds of automotive startups that emerged, only seven large companies are expected to remain in the next decade. Among the almost certain survivors are BYD, which leads the Chinese market, and the traditional SAIC.
The remaining slots will be filled by manufacturers who manage to stand out in an increasingly competitive market marked by consolidation.
Source: Quatro Rodas | Photo: Instagram @xpeng_global | This content was created with the help of AI and reviewed by the editorial team.
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