China’s wind turbine manufacturers are expected to see their gross profit margins halved next year as the government terminates subsidies, according to analyst Wood Mackenzie.

Annual added onshore wind capacity is forecast to fall by 16% in 2021 to 19GW, with turbine prices falling by 27% over the next five years, cutting OEM’s gross profit margins in half.

This has prompted market leaders Goldwind, Envision and Ming Yang to diversify into non-wind business sectors — namely water treatment and financing, electric vehicles and storage, and solar and financing, respectively.