The electric vehicle sector is now in the “most exciting moment”. Consolidation of this sector is inevitable, says Helen Liu of Bain & Company.
Consultant firm partner Liu told CNBC’s “Capital Connection” on Tuesday. She cited reasons such as the capital-intensive and technically heavy nature of the electric vehicle sector.
“Historically, we have seen invisible hands and visible trends, regulations like markets, and have continuously navigated the industry through integration trends,” she said.
on Monday, Minister of Industry and Information Technology of China There are “too many” EV makers in the country. These comments raised concerns about further regulatory action by Beijing. This time around, we’re targeting the self-driving car sector, following previous moves in other industries such as private education and technology.
Huaibin Lin of IHS Markit said he sees Beijing’s unlikely regulatory intervention in the short term as unlikely. The call for integration of the automotive sector by the industry and the Ministry of Information Technology is not new and has been going on for the past two decades, he told CNBC’s “Squawk Box Asia” on Tuesday.
“We are in [an] Lin, China’s auto manager at IHS Markit, added that the new energy vehicle market is currently gaining tremendous momentum. ..
“Is there a dramatic integration within the industry itself? I think there is a big question mark as long as the market continues.”
Consultant firm Bain Liu agreed that both the growth momentum and the outlook for the sector look very positive at this point. This is underpinned by factors such as support policies and the most important customer acceptance.
“Based on this year’s Bain survey, we find that, in fact, Chinese customers are leading the global trend in accepting EVs, and it’s growing steadily. I think, “she said.
In addition to domestic competition, IHS Markit’s Lin said Chinese electric vehicle makers are expected to cope with intensifying capital competition over the next decade.
He said some of this competition could come from long-time incumbents in the automotive sector. Volkswagen, BMW When Daimler Mercedes is currently coming up with a “dramatic” electrification strategy.
“In the next decade, there will be very fierce competition within the new energy vehicle industry,” Lin predicted. “No one knows who will actually survive in the end.”
Integration in China’s electric vehicle sector is “unavoidable”
Source link Integration in China’s electric vehicle sector is “unavoidable”