90% Of Chinese EV Makers Face Bankruptcy: China’s EV Industry Collapse

China’s EV industry, once thought to dominate the global market, is facing financial struggles as over 400 companies have gone bankrupt. Abandoned electric cars are a common sight in the country, highlighting the challenges. Initially, China encouraged EV production through subsidies, tax breaks, and incentives, leading to the growth of domestic brands. However, only one out of 487 companies currently operates profitably, with BYD and Tesla being the exceptions. Chinese companies struggle with profitability and face significant disparities compared to Tesla. Insufficient capital, poor product quality, and limited vehicle deliveries pose additional challenges. Despite this, the overall growth trajectory of China’s automotive industry remains strong due to robust domestic demand and technological advancements. The country’s commitment to R&D and expansion into the Middle East market also positions Chinese automakers for future success. Share your opinions in the comments below.