The Chinese Minister of Industry and Information Technology, Xiao Yaqing, advocates consolidation in the country’s electric car industry, as reported by the China Daily. Xiao Yaqing, who also acts as the top market supervisor, is encouraging local e-car manufacturers to merge and restructure because the number of manufacturers of electric vehicles in China is too large. Many of them are also of little importance. The e-car manufacturers would have to get bigger and stronger.
At the moment all players are full of enthusiasm and the electric car industry has developed tremendously. But the sector is very technology-heavy. Therefore, the resources should be used as market-oriented as possible, said Xiao Yaqing.
In the past ten years, the Chinese government has subsidized the e-car industry with around 100 billion dollars and has produced the current 300 or so Chinese e-car manufacturers. The consolidation that is now being sought could lead to many of the start-ups disappearing from the market. (os)
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