The automotive industry is in for a bloodbath if the CEO of Chinese automaker Xpeng is correct. The executive predicts that the transition to electric vehicles will result in a number of automakers dying off or being acquired, leaving less than 10 groups in total.
“In five to 10 years, it’s going to be a much more concentrated market,” Brian Gu, Xpeng’s CEO, the Financial Times recently. “I think the [number] of players will probably be reduced to less than 10 at the global stage.”
The somewhat pessimistic prediction comes at a difficult time for Xpeng and China’s automotive industry, in general. The automaker’s sales shrank by 50 percent in the first quarter of 2023, and it ranked as only the 12th largest EV manufacturer in China in that period.
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