China Has ‘Too Many’ EV Manufacturers Says Minister

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Photo: @JayinShanghai

Competition in the world’s largest auto market is heating up for the future generation of vehicles, and with companies like NIO, Xpeng Motors and Li Auto – among many others – seeing sales surges even amidst the ongoing chip shortage, one minister thinks the country has “too many” electric vehicle companies.

On Monday, Industry and Information Technology Minister Xiao Yaqing said China reportedly has “too many” electric vehicle (EV) companies, and the government is expected to encourage companies toward consolidation, according to Reuters.

The minister added details on the country’s plans to expand its charging infrastructure and to bring EV sales to more remote auto markets.

The news comes just weeks after Lotus confirmed its EV plans with a new headquarters in China, and just days after Tesla’s China arm opened Asia’s largest delivery center yet.

Despite the ongoing chip supply shortage, which caused Tesla to shut down production at its Shanghai Gigafactory in August, Xiao said the ministry planned to accelerate alternate solutions for mitigating the shortage.

Along with Tesla and a number of China-based companies, the chip supply shortage has also caused General Motors (GM) to shut down production for 1-2 weeks, and has significantly limited production for other companies around the world.

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