As of: 13.09.2021 10:58 a.m.
Thanks to government subsidies, there are around 300 different electric car manufacturers in China. Too many, thinks the Chinese government, which now wants to slim down the market. Small businesses are unlikely to survive this.
China aims to reduce the number of domestic electric car manufacturers. The People’s Republic has “too many” producers and will therefore promote consolidation, said Information Minister Xiao Yaqing.
He also announced that China will improve charging station infrastructure and sales of electric cars in rural markets. The government is working to accelerate the development of solutions to address the bottlenecks in the supply of chips for vehicles.
Only the largest manufacturers are likely to survive
The Chinese government had already started last year to gradually cut the once high subsidies for manufacturers of electric cars. In the past ten years, around $ 100 billion had flowed into this industry.
The subsidies led to a multitude of new e-car manufacturers, many of whom announced an electrified model but never launched it.
The consolidation that is now being sought should mean that only the large of the currently around 300 Chinese e-car companies such as BYD, Geely or Nio can continue to exist in the market.