Any speculation on how Chinese EV companies will consolidate (if ever)?
I'm really stumbled by this question because there doesn't seem to be many obvious M&A opportunities for the Big 4 nowadays (BYD, Chery, Geely, Changan).
I guess one that makes sense is Changan absorbing FAW and Dongfeng's passenger car divisions. But that seems to be pretty much it.
In terms of weak old companies we still have:
SAIC (+Wuling)
GAC
GWM
JAC
BAIC
> Many of them are too strong to be absorbed by the Big 4 or have too many local political connections (like SAIC)
And we also have countless startups with high valuations like Nio, Xpeng, Li Auto, Leapmotor, Xiaomi, Jidu, Neta
> For these startups, it's really hard to decide which one will go bust or get absorbed first because there's no clear winner or loser. Neta has the weakest China sales but pretty strong overseas sales.
And we also have the Huawei-related companies: Seres (AITO), BAIC (Stelato), JAC (Zunjie), Chery (Luxeed)
> It's also hard to decide what happens to these companies. Seem to be in a sort of limbo where nobody knows what is the best structure for them.
