zlacker

> 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+(OP)
> When you miss sales targets by 99.9% it’s got to be more than a competition problem

It's fairly common across the EV industry in China.

BYD is an amazing product and makes good cars. The other manufacturers not so much, as is reflected in Chinese EV car sales [0].

That's why manufacturers like SAIC (MG Motors), GAG (Wuling Motors), etc have resorted to trying to export abroad because they cannot beat BYD domestically, but this faces hurdles as most other major markets abroad (VN, JP, SK, ID, IN, Brazil, EU, MX, etc) place tariffs on autumotiive exports, forcing Chinese manufacturers to either open entire factories abroad with JVs or quit those markets

Every factory SAIC, GAG, GAC, etc opens with a foreign JV is an equivalent set of jobs and IP lost in China.

[0] - https://autovista24.autovistagroup.com/news/big-boost-chines...

>>jncfhn+(OP)
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.

>>alephn+P2
There are also Nios, Geely and Roewe on the streets of Shanghai.

>>41207048

BYD is building an EV plant in Turkye for $1bn.

https://electrek.co/2024/07/08/byd-building-huge-1-billion-e...