ASC-GM-Wheeling Automotive Electric Vehicles were stuck in a charging station at a roadside parking lot in Lizuzu, China on Monday, May 17, 2021.
Qilai Shen | Bloomberg | Getty Images
BEIJING (Reuters) – Tens of thousands of companies have jumped into the fray as the industry grows, according to Business Database.
By the middle of August this year, the number of new Chinese businesses related to “new power vehicles” had reached a total of more than 321,000, according to the report.
During the 2020 cholera epidemic in China, 78,600 businesses entered the industry this year, according to the database.
New power vehicles refer to the general category, which consists mainly of electric and hybrid vehicles. China is the largest market for automobiles, and by 2025 it wants 20% of new cars to be new power vehicles.
The share of major electric car manufacturers declined on Monday after indicating that China’s industry and information technology sector could be strengthened.
“Our businesses must be big and strong,” said Minister Ziao Yaking in a statement.
According to CNBC’s translation of China Transcript, “the number of new energy vehicles is currently very large, and in a small and fragmented state.”
“This is a version of the central government that only wants to fix version 2.0 [number] As you enter when you limit production licenses [and] They are licensed in 2017, ”said Sino Auto Insights, a Beijing-based consulting firm.
“Probably [saw] Excessive capacity building [and] There are so many brands in the market that can’t compete with the product, ”he said. These unparalleled companies are happy to make good money after a bad season, which will strengthen the whole sector.
Tu added that BIDI, which supports China’s top electric car manufacturers Neo, Exploring Lee Auto and Warren Buffett, “will be expected to benefit from efforts to strengthen the industry as it will eliminate competitors and perhaps give them a team or technology.” Their products. ”