Increased competition leads to market fragmentation

"At present, the top ten sales and sales proportion of new energy vehicle enterprises are still in the stage of rapid improvement, and the gap between the top enterprises and the relatively close enterprises is widening." China Automobile Association deputy Secretary-General Chen Shihua said.

From January to April, the top 10 enterprise groups in terms of new-energy vehicle sales sold a combined 1.887 million units, up 58.6 percent year on year, accounting for 84.9 percent of total new-energy vehicle sales, 8.4 percentage points higher than the same period last year, according to the association.

On the one hand, the performance of mainstream car enterprises continues to be good. On the other hand, Huatai Securities research report pointed out that the performance of new forces in car making is differentiated. In addition to Ideal and Nezha maintaining a high growth rate, Xiaopeng Nio is relatively weak.

Cui Dongshu also mentioned that recently, the new energy market is further divided, BYD and Tesla strong rise, Changan, GaC Aian, Geely and other good growth rate, SAic-GM-Wuling, Chery and so on are facing adjustment.

"At the beginning of 2023, the new energy market growth slowed down, the price war in the first quarter is a difficult challenge for many car companies, but in the long term, this year's new energy vehicle market will continue to grow." Nezha car said.

Saic GM-Wuling said that since 2023, the market competition has been further white-hot. As the acceptance of new energy vehicles in the user group is getting higher and higher, the new generation of consumers gradually become the main consumer group, and the market also puts forward higher requirements for products and enterprises.