
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.

Pexels | There was little effort from the MNCs before but that seems to be changing now
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.

Pexels | Companies are questioning the usage of fuel-run vehicles and are replacing them in China
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.
Merging Businesses
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.

Pexels | This is a vicious cycle that happens when there is an over-saturation of a certain commodity
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 inAuto News
-
`
Sutton Foster and Hugh Jackman Spark Romance on L.A. Date Night
Hollywood is abuzz with the latest photographs of Hugh Jackman and Sutton Foster, who appear to be confirming their romance during...
January 16, 2025 -
`
How to Fix Car Window Off-Track and Align It Properly
When your car window gets stuck or misaligned, it’s often due to an off-track issue. Learning how to fix car window...
January 10, 2025 -
`
How to Drive a Stick Shift: A Quick Guide for Manual Beginners
Driving a stick shift requires coordinating the clutch, brake, and accelerator to control a car with a manual transmission. Manual cars...
January 3, 2025 -
`
Why Drowsy Driving Is Just as Dangerous as Drunk Driving
Drowsy driving poses a serious risk to road safety, yet many underestimate its dangers compared to drunk driving. The National Sleep...
December 27, 2024 -
`
Where Is Hyundai Made? A Look Inside Global Manufacturing Hubs
Hyundai vehicles dominate roads worldwide, offering reliability and innovation. Yet, only some people know where these cars are actually made. The...
December 20, 2024 -
`
Why Am I Having Trouble Passing My Permit Test? Top Tips for Success
Failing the permit test can feel like a major setback, especially when you’ve put in the effort to prepare. The material...
December 20, 2024 -
`
Will America Follow Utah in Changing Its Drunk Driving Limit?
A growing number of states are considering lowering the drunk driving limit from the current standard of 0.08% blood alcohol concentration...
December 16, 2024 -
`
How Many Miles Is Good for a Used Car? Find Out Here
When buying a used car, one of the first questions that might pop into your mind is how many miles is...
December 12, 2024 -
`
Does Your Auto Insurance Cover Medical Expenses in Accidents?
Car accidents can lead to a range of unexpected challenges, from vehicle repairs to hospital visits. One of the most significant...
December 12, 2024
You must be logged in to post a comment Login