The International Energy Agency's recent report highlights intense competition in China's electric vehicle (EV) market, with over 120 companies vying for customers.

Economic challenges and slowing demand are expected to lead to consolidation, with only a handful of firms likely to survive.

Major players like Nio and Xpeng are facing financial pressures, while smaller EV makers are already experiencing difficulties, with some filing for bankruptcy.

The pricing war initiated by Tesla has further intensified competition.

Regulators have warned against overexpansion and urged measures to address the challenges facing the industry.

Chinese EV companies are advised to revamp their business models to prioritize innovation and new revenue streams beyond vehicle sales.

The struggle for differentiation among the crowded market continues, with the looming prospect of further consolidation in the Chinese EV industry.