China’s automotive market is both the largest and the most crowded in the world. While the total count fluctuates, current data suggest there are nearly 100 Chinese car brands on the market, along with more than 40 sino-foreign joint venture (JV) brands. The trouble is that the local market is becoming saturated and demand is slowing. Competition has prompted a pricing war, leaving players to scramble for razor thin margins.
“The Chinese automotive industry is burdened with way too many market players,” says Jacob Gunter, Lead Analyst, Economy, at the Mercator Institute for China Studies (MERICS). Consolidation is inevitable, but which brands are most likely to survive?
