zlacker

>>campus+(OP)
> Hengchi, an electric-vehicle (ev) maker owned by Evergrande, a failed property developer, told investors that two of its subsidiaries had been forced into bankruptcy. The group originally aimed to sell 1m evs a year by 2025; amid feverish competition it sold just 1,389 last year.

When you miss sales targets by 99.9% it’s got to be more than a competition problem

>>jncfhn+y9
It has to do with govt subsidy policy on making EVs that ended couple of years ago. Before that, every company with cash and even local govts entered EV manufacturing to avail the subsidies. Even when their core competency has nothing to do with EV manufacturing and even manufacturing anything. Same reason, some companies filled dumping yards with bogus "sold EVs", since repairing and keeping quality when being used will cost them more instead of making some substandard EV and generating fake sales cert.

Similar policy PRC used when building up solar and battery industries. Subsidise a hundred companies, and few will come out as winners. Reportedly with real estate issues and semi trade war economy is facing headwinds and PRC is scaling down subsidies.