https://www.msn.com/en-us/money/other/china-makes-more-cars-than-it-needs-now-it-s-shakeout-time/ar-BB1r9tUd
China Makes More Cars Than It Needs. Now, It’s Shakeout Time.
Excess capacity among carmakers in China is driving the world’s largest auto market into a shakeout phase.
*Overall, car sales in China rose 5.5% last year to 22.9 million vehicles, the China Passenger Car Association said Thursday. Yet that demand is far short of the capacity companies have built up, leading them to cut prices and push into overseas markets to stay in the game.
Last year, 23 EV brands either exited China or were consolidated into other brands, while a dozen new brands came to market, according to Stephen Dyer, managing director at AlixPartners. He said 112 brands sold at least one EV in the first nine months of last year.
In the US at the turn of the century, 1900. there many new car manufacturers. Some say up to 3000. And electric vehicles were available at that time. But by 1930 the depression and consolidation winnowed that number down to 40-50 manufacturers.And the franchised dealership system arose during that time.
By the 1950’s there were only 10-12 survivors. One by one [Kaiser, Packard Desoto, Hudson &American Motors] died & or merged into the Big Three. And finally one of the Big Three was bought out by an European corporation.
Consolidation will soon occur in China.
It will be a good time for Chinese EV consumers. But they had better buy an EV from a likely survivor.