There are more than 500 electric vehicle startups in China, and it is now claimed that the capacity of electric vehicles in the country will reach 20 million units by 2020. This figure is more than 10 times the target set by the Chinese government for annual sales of 2 million units per year.
For this reason, the Chinese government has been forced to withstand the flood of small and unstoppable startups and to cancel licensing of companies that annually produce less than 100,000 electric vehicles. Most small companies with poor products are in this category.
China has more than 500 companies in the field, and most of them are not familiar with major global brands such as Bayton, New, SF Motors, Baik, BYD. You could easily get to know about more than 100 startup apps with 10 different products last year during a visit to the Beijing Motor Show.
Most of these startup products, like the Zhidou D2S, are a lightweight dual car like golf cars. These products are even smaller than the Fiat 500e.
Apart from the risk of the death of these electric toys, the world’s largest automotive manufacturer, it now generates more than just electric cars.
Currently, Tesla intends to launch a factory in Shanghai, which has the ability to produce more than 500,000 units a year. The Volkswagen Group will also launch in Shanghai a production site with a capacity of 300,000 electric vehicles a year.
China’s total car sales dropped 5.8 percent in 2018, reaching 22.3 million units. This is the first time we saw a drop in sales since the 1990s. Also, about 1.26 million vehicles with new energies (electric, hybrid, etc.) have been sold, representing more than 61.7 percent growth. This figure is expected to reach 1.5 million in 2019.