Chinese companies are ready to rally against Tesla
Chinese manufacturers of electric cars, competitors of Tesla, expect "inevitable consolidation," Helena Liu, partner of the international consulting company Bain&Company, told CNBC. According to her, this sector is now experiencing an "exciting moment".
"I would say that consolidation is an inevitable trend in this industry," she said. Among the reasons, the expert called the capital intensity and high-tech nature of this sector.
"Historically, we have seen "invisible hands", such as the market, as well as some visible trends, regulatory requirements that have constantly moved the industry towards consolidation, " added Helena Liu.
Earlier this week, the Minister of Industry and Information Technology of China said that there are "too many" manufacturers of electric vehicles in the country, the TV channel notes. This raised concerns about further actions by the authorities aimed at the transport sector.
However, another expert, analyst from IHS Markit Huaibin Lin believes that the Chinese authorities are unlikely to interfere in the industry in the short term. The market itself has been gaining momentum in recent years, and so far it assesses its prospects positively. At the same time, he stressed that Chinese manufacturers will have to withstand serious competition over the next decade, fight for the capital. In part, it may come from major players, such as Volkswagen and BMW, who offer their strategies for switching to electricity.
Earlier it was reported that the Chinese company Xiaomi has registered a company for the production of electric vehicles. As CNBC reported, judging by the investments, the company is going to compete with the main players in the market, including Tesla.
TAGS: CHINA, TESLA