Chinese car market enters a consolidation phase

China’s car industry is moving into a new phase: after years of very fast growth, market pressure is forcing automakers to change course. Too many brands, excess production capacity and an increasingly fierce price war are reshaping the landscape.

Weaker companies may now face mergers, acquisitions or exits from the market. Stronger players, meanwhile, must protect margins while electrification keeps driving investment and competition. The shift will also affect suppliers and have global consequences.