BYD Demands 100 Carmakers Exit China’s Crowded EV Market by 2025: Survival of the Fittest

• Why Is BYD Calling for 100 Carmakers to Leave China’s EV Market?
• How Many EV Brands Will Actually Survive in China?
• Is BYD’s Overseas Expansion a Lifeline or a Gamble?
• What’s Next for China’s EV Industry?
• FAQs: China’s EV Market Shakeup

China’s EV market is a battlefield, and BYD’s Stella Li just declared war. With over 130 automakers fighting for scraps in the world’s largest EV arena, Li warns that price wars and “involution” are unsustainable. The Chinese government is cracking down on cutthroat discounting, and BYD predicts a brutal consolidation—only 15 brands may survive by 2030. Meanwhile, Chinese EV giants like BYD, Changan, and Leapmotor are racing overseas, but Europe’s protectionist policies and high costs loom large. Here’s why the EV shakeup is accelerating—and who’s likely to survive.

Why Is BYD Calling for 100 Carmakers to Leave China’s EV Market?

Stella Li, BYD’s executive vice-president, didn’t mince words at the Munich Motor Show: “Even 20 OEMs is too much.” She’s right—China’s EV market is drowning in competition, with 130+ manufacturers slashing prices just to stay alive. The government hates this “neijuan” (involution), blaming it for deflation. So, Xi Jinping’s administration is tightening the screws, forcing weaker players out. BYD, Xpeng, and analysts like those at Citi agree—this isn’t just a slowdown; it’s a bloodbath waiting to happen.

How Many EV Brands Will Actually Survive in China?

AlixPartners’ data spells doom: of 129 EV brands in China last year, only 15 will be financially viable by 2030. Xpeng’s even more pessimistic, predicting the global auto industry will shrink to just 10 giants. BYD’s Li admits the obvious: “Some OEMs will be pushed out.” Price wars? Over. Now, it’s about tech, quality, and driving experience—areas where BYD thrives. But even the king isn’t safe; BYD’s Q2 profits missed targets thanks to new supplier payment rules and Beijing’s crackdown on pricing loopholes.

Is BYD’s Overseas Expansion a Lifeline or a Gamble?

With China’s market tightening, BYD’s betting big on Europe. Its Hungary factory is on track, but scaling up will take time. Meanwhile, Changan’s hitting the UK, and Leapmotor’s partnering with Stellantis to dodge EU tariffs. But Europe’s no paradise—labor and energy costs are sky-high, as Leapmotor’s Tianshu Xin grumbled. Still, BYD’s Li insists profits will stay strong. Question is, can Chinese brands outmaneuver EU protectionism? Or will they get squeezed there too?

What’s Next for China’s EV Industry?

Three words: consolidation, innovation, globalization. The free-for-all is ending, and only the smartest (or richest) will survive. BYD’s slashed sales forecasts (4.6M units in 2025 vs. 5.8M) hint at the pain ahead. But here’s the twist: as China’s market shrinks, its global ambitions grow. The real showdown? Whether BYD and friends can conquer Europe before Europe shuts them out.

FAQs: China’s EV Market Shakeup

Why is BYD pushing for fewer EV makers in China?

Stella Li argues the market’s overcrowded, leading to destructive price wars. The government agrees, linking discounting to deflation.

How many EV brands will survive in China by 2030?

AlixPartners predicts just 15 out of 129. Xpeng thinks globally, only 10 automakers will remain by 2030.

Is BYD struggling despite its dominance?

Yes—Q2 profits dipped due to new regulations. Citi cut its 2025 sales forecast by 1.2M units.

Are Chinese EV makers expanding overseas?

Absolutely. BYD’s building in Hungary, Changan entered the UK, and Leapmotor teamed up with Stellantis for EU production.