Discover how China’s automotive industry is on the cusp of profound transformation. This report from InterChina Consulting explores the evolving landscape, highlighting key trends such as industry consolidation, the rise of electric vehicle (EV) technology, and the shifting profit pools within China’s automotive sector.

It breaks down how the Chinese auto industry is on the brink of a big shake-up:

• The Auto sector is on the verge of significant consolidation, with OEM capacity utilisation stabilising around ~75% amidst declining profitability.
• M&A activity remains active, with an average deal size of ~$96M, signalling ongoing interest despite challenging margins.
• The shift from traditional ICE (internal combustion engine) parts to electric vehicle (EV) components is accelerating; suppliers are adapting to new technologies, including EV batteries, electronics, and ADAS.
• Chinese firms are increasingly leading global innovation efforts, reducing R&D cycles and pushing "China-Leading" products onto the world stage.
• Companies are reviewing their portfolios, divesting in underperforming assets, and seeking partnerships to enhance global competitiveness.

Download this exclusive report to gain valuable insight into the future of automotive M&A, technology shifts, and how to position your investments in a rapidly changing industry. 

Click here to get the Chinese version report.

About InterChina Consulting

InterChina is a leading strategy, operations and corporate finance boutique specialised in China. Please contact us to discuss your needs and how we could provide support: Opportunity & Growth, Strategic Revaluation, Next-Level Localisation, Local Partnerships, China For Global.

About Author

Franc Kaiser, Partner-in-Charge| InterChina

franc.kaiser@interchinaconsulting.com

Charles Wang, Principal, Strategy Practice| InterChina

wang.qiao@interchinaconsulting.com