The Electric Car Industry is Reaching New Heights in China
The increasing issue of climate change has become a serious concern for everyone. States are taking measures to reduce their carbon footprint and switch to environment-friendly alternatives in order to play their part in preventing further deterioration of the environment.
However, states are not alone in this race. Another major stakeholder is the multinational corporations that have played a great role in the damage caused to the environment, as scientists continue to warn everyone about the devastating effects of climate change.
A Rising Change
The auto industry in China is beginning to revolutionize and take on a new challenge in order to provide their customer base with “new energy vehicles” that are based on electricity. This electric car industry is on the rise and reports have shown that the industry is showing no signs of stopping anytime soon. These businesses in China have grown by 81,000 in the year 2021 resulting in a net total of 321,000.
Trouble in Paradise
The industry of new energy vehicles is giving rise to a new type of vehicle that is purely based on electric power and vehicles that are based on hybrid power. While China leads the race for being the world’s largest market for automobiles, it also plans on turning the sale of new energy cars to 20% by the year 2025. However, recently, the industry faced an obstacle as the shares of major electric car manufacturers fell when China’s Ministry of Industry and Information Technology chimed in.
Minister Xiao Yaqing stated that the businesses need to enter into the consolidation phase where competitors in the same industry begin to merge together in order to gain a large portion of the market share and get the advantage of synergies. He also commented on the rising number of vehicle businesses and stated that they are small businesses in large numbers and scattered form.
Some Win, Others Lose
Tu Le, the founder of a Beijing advisory firm called Sino Auto Insight, talks about the situation stating that this increasing number has led to the buildup of many competitors that are bringing their products into the market and the Chinese market is no stranger to this phenomenon. He added that while there is negative sentiment surrounding the potential consolidation, leading electric car companies like Nio, Xpeng Li Auto, and BYD will benefit from it as they won’t have to worry about more competitors.
More inLuxury Cars
Here’s All You Need to Know About The Upcoming Audi Q4 E-tron
Watch out, Audi fans – it looks like you’ll again be in a tight spot in the upcoming year! In 2015,...October 27, 2021
Can Ferrari Laferrari Break The Record of The Most Expensive Supercar?
It looks like a record is about to be smashed! The Ferrari LaFerrari is all set to break the auction record...October 27, 2021
Lucid Ups Its Game By Revealing DreamDrive – “An Advanced Driver Assistance System”
Ever since electrification changed the face of the automotive industry, automakers have been trying to adapt to the new normal. Some...October 25, 2021
Massive Vehicle Recall By Tesla Surprises Car Enthusiasts
Imagine you’ve spent two to three years designing a car, and when you launch it in the market, you get a...October 21, 2021
Which Cars Are the Safest and Most Affordable for Young Teens? Make the Car Search Easier For You!
Ever since the novel virus engulfed the world, lots of things began to change; some for the better, some for the worst. People...October 14, 2021
Stellantis All Set to Transform Turin Plant Into Center for Building EVs
Looks like Italian roads will soon be flooded with EVs! Multinational automaking corporation, Stellantis (currently situated in Milan), is planning to...October 14, 2021
Introducing The Ineos Grenadier – A Step Up From The Jaguar Land Rover Defender
A true businessman knows an opportunity when it’s right in front of them – and that’s exactly what Jim Ratcliffe saw...October 4, 2021
BMW Tests The New X1 On German Roads
Life is full of mistakes, some huge and some ignorable, and everyone makes them sooner or later. But that doesn’t stop...October 2, 2021
The Best Hypercars to Get in 2021
About a decade ago, in denoting automotive supremacy, hypercars were still some ways away from superseding supercars. But, automakers love nothing...August 12, 2021