Although the number is much higher, with more than 120 different brands registered, the competition is more than fierce in China. Not everyone can succeed. Last year, some producers disappeared from the scene, although some of them were also present on the Old Continent.
After more than a century of European, Japanese and American dominance, Asia is consolidating and beginning to dominate. With Korean brands already established around the world, it is now China that is starting to attract customers.
In just ten years, this Asian country has completely transformed its auto industry. Today there are more than 120 registered brands, but not all of them can survive. Some have already played their last game.
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Despite the fact that China has more than a billion people, there is no market for everyone. Electric cars are booming in the country, while some manufacturers are trying to find their place among the mass market. The demand is unstoppable, but not infinite. The competition is brutal, and standing out from the crowd is impossible for some small brands. Some of them have tried to export, but penetrating more conservative markets can be much more complicated.
The market will continue to rid itself of smaller and irrelevant brands. In just 12 months, several brands have closed their doors. Little-known Ji Yue and Yuanhang managed to produce only a few vehicles, and despite participating in recent car events in China, both companies declared bankruptcy. Hundreds of workers were fired, and the state took control of the dismantling process.
The departure of the Neta brand was no less striking. Despite attracting attention with their good work, they failed to attract the attention of customers. At last year’s Beijing Motor Show, they presented the Neta L, a compact plug-in hybrid that costs less than 14,000 euros. Unfortunately, he did not become famous. The brand tried to expand its business in Southeast Asia, but with barely 55,000 cars sold annually, the situation was unsustainable. All employees have been fired, and the brand no longer operates in China or any other region of the world.
You may not have heard of the Human Horizons company, but you have heard of its car brand – HiPhi. Founded in 2017, the company only needed two years to market its first car. With a focus on luxury, HiPhi has focused more on its business outside China than inside it. Europe was the focus of most of their commercial strategy. However, the sale of extravagant electric cars with a price of more than 100,000 euros with a short history turned out to be a failure. Human Horizons has filed for bankruptcy. Although the company is not completely closed, its situation is practically irreparable.
With brands such as SAIC, Geely, BYD or Chery, China has managed to build a significant niche in the global market. Many of its companies survive on their own, while others sign important agreements with other manufacturers. One example is Leapmotor. The company started its European commercial journey with Stellantis as their 15th brand. It was a way for them to survive and reduce their dependence on the market, which, although the largest in the world, does not have the capacity to withstand so much competition.
