Chinas EV Industry Collapse: 90% Of EV Manufacturers May Face Bankruptcy, 100 Brands May Disappear

At this crucial stage, new energy vehicles have arrived at a tipping point where 90% of the manufacturers may face insolvency. A price reduction of 100,000 for Mercedes-Benz, BMW, and Audi is no longer astonishing; even the automotive titan Toyota offers a buy one, get one free deal. The aftermath of the price war is plummeting stocks for automobile companies, including BYD and NIO; so people must wonder about the underlying cause of this situation. Traditional car companies venturing into new energy vehicle manufacturing is expected. However, Foxconn entering car production, real estate company Evergrande joining the race, and the participation of other major players led to the emergence of 100 Chinese new energy vehicle companies in the past decade. Regrettably, only BYD has turned a profit among these enterprises, with a modest 3% net profit. #chinaeconomy #chinasev #electriccars #chinaobserver All rights reserved.