China’s electric vehicle industry is much larger than Nio, Xpeng and Li Auto

The SAIC-GM-Wuling Automobile Co. electric vehicle is connected to a charging station in a roadside parking lot in Liuzhou, China, on Monday, May 17, 2021.

Qilai Shen | Bloomberg | Getty Images

Beijing — While investors are seeing a dramatic rise in stock prices of Chinese electric car makers Nio When Xpeng, Tens of thousands of companies are on the rise As the industry growsAccording to the business database Qichacha.

By mid-August this year, the number of new businesses in China related to “new energy vehicles” had increased by 81,000, for a total of over 321,000. Qichacha said in a report.

This year’s growth comes after 78,600 companies enter the industry in 2020 during a coronavirus pandemic in China. The database showed.

New energy vehicles are a general category that mainly consists of pure electric vehicles and hybrid vehicles. China is the largest automobile market in the world We want to make 20% of the new cars sold by 2025 new energy cars.

Shares of major electric car makers fell on Monday After China’s Ministry of Industry and Information Technology has shown the possibility of sector integration.

“Our business needs to be bigger and stronger,” Minister Xiao Yachin said at a press conference.

“Currently, the number of new energy vehicle businesses is too large and scattered small,” said CNBC’s translation of the Chinese transcript.

“This is version 2.0 of the central government, [number] Of the participants as they did They restricted the manufacturing license [and] 2017 Permit “ TuLe, founder of Beijing-based advisory firm Sino Auto Insights, said.

“They are probably [saw] Accumulation of excess capacity [and] “Too many brands can’t compete with their products in the market,” he said. “This happens frequently in the Chinese market in various sectors, leading to race to the bottom where companies compete on price alone. These uncompetitive companies It puts stress on the entire sector because he is willing to throw good money after bad. “

Mr. Tu added that he is looking forward to Xpeng, China’s top electric car maker Nio. Reauto BYD, backed by Warren Buffett, benefits from efforts to integrate the industry. “We will be able to eliminate potential competitors and gain teams and technologies to enhance our products.”

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China’s electric vehicle industry is much larger than Nio, Xpeng and Li Auto

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