China's EV Industry Collapse, Over 400 EV Companies Have Disappeared & 90% Gone Bankrupt in 5 Years

Musk's words accurately reflect the predicament faced by Chinese electric vehicle companies, who are struggling for profits and cash flow. According to current data, the operating profit margins of BYD, NIO, XPeng, and Polestar mentioned by Musk are 14 to 74 percentage points behind that of Tesla. In terms of cash flow, this gap is as high as 16 to 20 billion US dollars. These leaders in the Chinese electric vehicle industry obviously fall far short of Tesla in terms of survival ability and risk resistance. The fate of other Chinese new energy vehicle companies is even more worrying.
Statistics show that the number of Chinese new energy vehicle companies once exceeded 487 in 2018. However, by 2023, only around 40 new energy vehicle companies could operate normally. That is to say, over 400 new energy companies have disappeared, and more than 90% of the car companies have gone bankrupt. Even those companies that can actually manufacture vehicles have experienced serious breakages in their capital chains this year, including emerging car manufacturers from the second, third, and fourth tiers like Aiways, Leapmotor, Weltmeister, Skywell, Hozon, SITECH, and Future Mobility. These companies are facing different problems, but they can mainly be attributed to the following key factors.
#chinaevcar #chinaeconomy #chinacollapse #chinaobserver
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[rogerdodger]

Almost every Chinese company cooks the books, I don't know why BYD wouldn't. I would seriously question any number that they publish.

[samsonsoturian]

But a lot of these ventures did achieve their intended purpose because they paid execs and workers via government subsidies.

[TK]

I still don't understand China's obsession with electric cars when so many regions face black outs year round. At the same time most Chinese power plants are coal burning and they building more and more of those.

[cbuchner]

That‘s quite normal in a hyped field oversaturated with many startups - the majority of them fail or get absorbed by bigger players.

[ItsJoKeZ]

have the speaker move away from the mic more and use a pop screen / filter to stop the windy pop sounds, etc. just up the gain slightly if shes too quiet or find better natural balance.

[TheBryceWade]

Think of how much money has been wasted rushing into EVs that are now bankrupt.

So crazy how wasteful our civilization is.

[edwardriffle]

Interesting video. Electric manufacturers will probably follow the us pattern. From 1910 to 1950 American automakers declined from hundreds to about 10 and then shrunk to 3. Consumers were well served with lower price better quality and wide choice. Capitalism with supportive but not controlling government serves all.

[wenzizhangchuanqi]

Li Auto was profitable in December 2022 and also in the first quarter of this year, with a gross profit margin of 20%

[jonathanikeda]

I am not surprised that EV companies in China are bankrupted because of lowest sales in metropolitan cities with a population of millions. Why? Too cramped. It is impossible to find a legal parking for vehicles. Very shortage of parking lots like NYC and DC.

[stephenbuck]

The situation in China with electric cars is no different from what happened in the US in the start of the 20th century when petrol cars first started to be produced. There were a lot of start ups which either merged or failed. The large international car producers have an advantage as they already know how to manufacture cars they only need to develop battery technology and electric engines whilst still having their income from existing petrol sales.

[awjaaa]

Ah, yes, the spicy (highly flammable) tofu cars.

[apborick]

So the big brains in China can't figure out how to make auto paint?😁😂🤣

[ric]

We lied, we stole, we cheated. We have entire training courses - MP.

[pmshah]

I am really surprised. We have been manufacturing all.kinds of automotive paints for more than 60 years that I know of.

[keegan]

Don’t buy one of these, the fire risk is high.

[vernaclevinger]

Most of the car is computer. No chips no EV car.

[IamCaleum]

This is a perfect example of how you can steal intellectual but without the experience gained in creation you can still fail.

[Zebadee]

Interesting points about the paint for EVs. Never occurred to me before, but intriguing.

[stlouisix]

As someone who is interested in the electric vehicle market, this video provided me with a lot of valuable information about the challenges faced by Chinese electric vehicle companies. It’s concerning to see how even leading companies like NIO and XPeng are struggling in this highly competitive market despite receiving massive subsidies from the CCP and from the internationalists. Communism is unproductive, particularly in innovation.

[beansmalone]

If electric cars are so great why do governments around the world have to pay people to buy them?