• The craze for Chinese electric cars.

              In recent years, brands have resorted to aggressive discounts, continuous promotions, and free financing to maintain registration volumes. This strategy has sustained growth but has undermined the sector's profitability and generated an unsustainable spiral of competition.

              At the same time, the Chinese authorities have begun to intervene to curb commercial practices they consider harmful to industrial stability and to avoid deflationary risks in the economy. The combination of lower margins for price competition and high cost structures is putting smaller or less efficient manufacturers in a tight spot.

              Added to this pressure is a structural problem: installed production capacity far exceeds actual demand. Chinese factories can manufacture far more vehicles than the market can absorb, which has significantly reduced the average utilization rate of plants. This overcapacity, accumulated over years of investment driven by public incentives and expectations of continued growth, is forcing the sector to make an adjustment that is now considered inevitable.

              The consolidation process will not be immediate or uniform. Some companies may avoid closure through mergers, regional alliances, or specialization in specific niches. Furthermore, given that local governments have supported the development of the industry due to its impact on employment and economic activity, they may intervene to protect certain strategic companies. This factor may slow down the disappearance of brands and prolong the transition to a more concentrated sector.

              Faced with losing market share in China, many manufacturers will look to grow abroad to make up for falling domestic sales. However, international expansion poses significant obstacles, such as tariffs, technical requirements, still limited commercial networks, and higher implementation costs in Europe and America.   At the same time, the need to offload excess production could intensify the arrival of more competitively priced Chinese vehicles on international markets, increasing pressure on traditional manufacturers. 

              For European and Spanish drivers, this scenario brings both opportunities and risks. On the one hand, it could facilitate access to more affordable and technologically advanced models. On the other hand, trade tensions and possible protectionist measures could make this offer more expensive or limited. In addition, the disappearance of suppliers in China could affect global supply chains for batteries and electronic components, which would have repercussions on costs and delivery times for the entire industry.