‘Do or die’ for small carmakers: China market braces for 156 new models as price war looms
A record wave of launches – mostly EVs – threatens to overwhelm demand, forcing smaller players into a fight for survival
A record 156 new models are expected to hit the Chinese automotive market in the second half of 2026, intensifying concerns about small players’ profitability as a new price war looms.
“Demand for new cars has rebounded but it is not enough to shore up carmakers’ profitability,” said Eric Han, a senior manager at Shanghai consultancy Suolei. “New models will drive overall deliveries of mass-market brands, but some companies may face a do-or-die situation due to escalating competition.”
An HSBC report last week said the mainland China market would see 58 new models in the third quarter, followed by another 98 in the three months ending December.
About 90 per cent of the new entrants were expected to be EVs, it added.
About 50 EV makers on the mainland have been banking on new models to sustain sales growth, thanks to consumers’ eagerness to embrace new technology.