Analysts predict market consolidation for smaller EV manufacturers

However, smaller players were expected to face falling sales and mounting losses for the rest of the year as competition got fiercer, according to analysts.

The rosy performance added to evidence that the Shenzhen-based carmaker – spurred on by its new model launches and buoyant exports – was returning to solid footing despite a bumpy start in 2026.

“A widening gap between the winners and the bottom players would force some underachievers to exit the market in the coming one or two years,” said Phate Zhang, founder of Shanghai-based industry data provider CnEVPost.

“The leading EV assemblers, with production scale and research strength, are set to increase their global market share because of their advantages in pricing and innovation.”