FAW Deal Unlikely to Reshape China's Competitive Auto Industry Near Term
Dow Jones
Sep 29
1026 GMT - The GAC-FAW deal is another positive signal that China's auto-industry consolidation is starting to gain traction, Bernstein analysts write in a note. However, the deal is unlikely to materially alter the structure of China's highly competitive auto industry in the near term, they say. The electric-vehicle market remains exceptionally fragmented, they add. China had 117 EV makers in 2025, 81 of which sold fewer than 10,000 vehicles for the year and collectively accounted for a 0.8% market share, they note. While many of these players are unlikely to be sustainable over time, the consolidation process is expected to be more gradual than rapid, they add.
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