
Are we at the beginning of the consolidation of Chinese car companies?
Hi. GAC will acquire 50% of FAW Group's 50% stake in Toyota: https://finance.yahoo.com/markets/stocks/articles/gac-agrees-acquire-faw-group-151334732.html
Then you have news of Geely acquiring 30% of Nio's battery swapping unit: https://asia.nikkei.com/business/automobiles/electric-vehicles/geely-to-acquire-30-of-competitor-nio-s-battery-swapping-unit
Dongfeng and Changan were in discussions to merge last year as well, but the deal fell through and they did not merge.
I wonder if the GAC and FAW deal, and the Geely and Nio deal, are a one off, or whether it's the beginning of more mergers that we will see. I have always thought there will be consolidation at some point (or the weaker and smaller players in China will just fold), so it will be interesting going forward if what happened is just an anomaly, or whether there will be more mergers and consolidation in the Chinese car industry.