Second-tier battery manufacturers struggle to survive amid market consolidation and margin compression

Mid-sized power battery companies in China face severe profitability pressure as industry leaders capture disproportionate market share and profits, creating a 'Matthew Effect' where the rich get richer. These manufacturers lack the scale, capital, and pricing power of industry giants, making it nearly impossible to compete on cost while maintaining viable margins. Current survival strategies (price competition, capacity expansion) are failing as they deepen losses rather than secure market position.