China’s auto industry is ripe for consolidation and will eventually boast just five large domestic producers, a senior Chinese industry executive has predicted. Zhu Huaron, president of Chang’an Automobile, one of the country’s largest domestic carmakers, told a conference in his company’s hometown of Chongqing that attrition would soon cut the ranks of Chinese car brands, which stand at 46. Zhu declined to say which marques would survive and which will fail, but said the number of producers must inevitably shrink. According to the Financial Times, analysts have long said that a number of factors such as tighter fuel efficiency standards, a government-backed drive to produce electric vehicles and new technology such as autonomous driving mean smaller producers that cannot afford the hefty investments to stay competitive are likely to be left behind. China’s auto sector is still dominated by foreign brands such as Volkswagen and GM.
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