The arrival of electric cars will eliminate car manufacturers ?

Will the advent of the electric car lead to a reduction in the number of car manufacturers ?

According to the CEO of Xpeng, the arrival of the electric car will lead to a major transformation of the automotive market, with a significant reduction in the number of manufacturers. It estimates that fewer than ten car manufacturers will survive by the end of the decade.

Although traditional manufacturers can invest heavily to make the transition to electromobility and compete with brands and start-ups specialized in this field, the survival of these manufacturers is not yet assured, according to the CEO of Xpeng.

Brian Gu recently said the automotive market will be much more concentrated in five to ten years, with less than ten participants on the world stage. To survive, Chinese manufacturers will have to have a cruise rate of 3 million annual sales, of which nearly half will have to come from outside China.

However, the Xpeng brand itself is experiencing difficulties, with a 50% drop in sales in the first quarter of 2023, which currently puts it in 12th position in sales volume in China. In addition, political tensions between the United States and China could make it difficult for Chinese manufacturers to penetrate the American market.