Consulting firm: The market share of foreign car manufacturers in China will only decrease.

According to Gate News bot and a report by Bloomberg, the outlook for foreign automakers in China is not optimistic. The latest research by consulting firm AlixPartners shows that as the market shares of Japanese, European, and American companies gradually decline, the dominance of domestic brands is expected to rise to 76% by 2030.

Despite ongoing competitive pressure, it is expected that China's fierce price war in the automotive sector will escalate further rather than weaken.

It has been reported that automakers will not publicly announce price reductions, but will increasingly implement "hidden" buyer incentives, such as insurance subsidies, offering zero-interest financing, or equipping models with enhanced driving assistance features (at no additional cost).

Market leader BYD Co. has recently adopted a similar strategy. The company announced in February that its so-called "Eye of God" advanced driver assistance system would be applied to 21 models, including economy cars. BYD also led the latest wave of price cuts, with 22 of its all-electric and plug-in hybrid models slashing by as much as 34% at the end of May.

The Chinese automotive industry once relied on foreign joint ventures, but it has now undergone a rapid transformation, which is partly attributed to the government's strong support and investment in new energy vehicles. With the rise of domestic brands, foreign automobile manufacturers have been squeezed.

In recent years, facing a slowdown in domestic economic growth and ongoing issues of overcapacity, Chinese automakers have prioritized global expansion. AlixPartners stated that Chinese automotive brands are expected to capture 10% of the European market by 2030, with an anticipated additional sales of 800,000 vehicles, which could fundamentally reshape the automotive industry on the European continent.

Meanwhile, the report states that in China, electric vehicles are expected to account for 50% of the market share by 2030, while the share of internal combustion engine vehicles will rise from the current half to around 19%.