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IT Home reported on July 14 that Western automakers have been concerned about competition from China's rapidly developing and aggressively priced electric vehicles. But many Chinese electric vehicle brands are also facing pressure from domestic competition, and experts believe that by 2030, only one in seven Chinese electric vehicle brands will be profitable.

According to Alixpartners, China currently has 137 electric vehicle brands.But the firm's analysts believe that by 2030, only 19 brands will be profitable.

Such high elimination rate forecasts stem from the brutal price war that has continued in China's domestic market over the past few years and shows no signs of abating. Dominant companies like BYD have huge profit margins and can repeatedly lower prices, squeezing out competitors with slimmer margins, who have no choice but to join the price-cutting trend in order to maintain market share.

Alixpartners said the price war has already cost some Chinese brands dearly, including WM Motor, which filed for bankruptcy in 2023, and Alixpartners expects more brands to follow suit. Analysts predict that unprofitable brands will be forced to exit the industry entirely or change their strategy to pursue only a small share of the automotive market, according to Bloomberg.

Meanwhile, giants such as BYD and Tesla will further consolidate their positions. Last month, Alixpartners experts said they expect that by 2030,Chinese automakers will capture 33% of the global auto market.

IT Home noticed that the report also revealed a shocking detail: car factory workers of emerging electric vehicle brands work up to 140 hours of overtime per month, which is 7 times that of factory workers of traditional car manufacturers (up to 20 hours).