Bankruptcies and Slowdown Hang Over China’s Electric Car Market

They have billions of dollars in funding, backing from China’s biggest tech companies and the world’s largest electric vehicle market at their doorstep. But Chinese EV start-ups face a struggle to survive in the face of intensifying competition and subsidy cuts, the Financial Times reported. Although analysts are reluctant to name companies that could disappear, the two dozen Chinese EV start-ups such as Nio and Xpeng, which have raised more than $10bn in recent years, are expected to be cut down to a handful. China’s electric vehicle sales have grown tenfold since 2014 and last year it became the first country to see new energy vehicle sales surpass 1m, about three-quarters of which were pure EVs and the rest hybrids. But that growth has been dependent on subsidies averaging at Rmb70,000 ($10,100) per vehicle, allowing companies to lower prices. Read more