LR03 battery

The concentration of power LR03 battery companies continues to increase, the strong ones become stronger, and the weak ones become weaker

As the national subsidies for new energy vehicles become stricter, the cost of power battery raw materials continues to increase, the capital pressure continues to rise, and the technical threshold of power batteries continues to increase, the battery industry has now entered a period of adjustment and differentiation and reshuffle, showing a pattern of the strong becoming stronger and the weak becoming weaker.

The concentration of enterprises continues to increase

"The power battery industry is concentrating very quickly. In 2015, there were about 150 to 60 domestic power battery companies that provided batteries to vehicle companies, but this year it is expected that there will be only 50 to 60." Liu Yanlong said that the decline in government subsidies and the rapid increase in technical thresholds are the main reasons for the acceleration of the power battery agglomeration effect. "If companies do not have technical strength, they will lose customer resources and exit the industry."

It is understood that the total market share of the top five power battery companies in my country currently accounts for 78.2%, of which the top two, CATL and BYD, account for 42% and 21% of the market share respectively, and the companies ranked 3-5 also account for 3-5% of the market share. The concentration of the industry market has further increased, and the leading effect of enterprises is obvious.

"The increase in enterprise concentration can avoid duplication and waste of market capital, which is good for the development of the industry." Qin Xingcai, vice chairman of China Electric Power Shen Co., Ltd., told reporters that if Chinese companies want to make breakthroughs in the international market, they must increase their investment in technology and improve the specific energy of batteries to remain invincible in the competition. "There are more than 200 power battery companies in my country, all of which have their own technical routes and have invested a lot of money in technology. But with the intensification of competition and the decline of subsidies, many companies have now withdrawn from the market. The technical strength of these companies is average, which is a duplication and waste from the perspective of funds."

Market segmentation becomes a way out for small and medium-sized enterprises

Liu Yanlong holds the same attitude. He believes that small and medium-sized enterprises should clarify their market positioning as soon as possible and find the right market segment to focus on. "Small and medium-sized enterprises can appropriately find some niche and relatively mild market segments as their target markets. Small ships are easier to turn around. Sometimes small-scale enterprises have more advantages in this regard."

But product quality is the key to winning consumers. "Enterprises themselves still need to strengthen their technology and improve product quality, which is the most fundamental way to win in the market." Qin Xingcai told reporters.

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