The Chinese government has warned against overbuilding in the electric vehicle (EV) market and will encourage consolidation, Industry and Information Technology Minister Xiao Yaqing recently announced, according to a Reuter’s report.
Many of the green vehicle manufacturers are small and scattered across the country.
The Chinese government’s promotion of eco-friendly vehicles has led to EV car manufacturers, including NIO, Xpeng and BYD Co. Ltd., to grow their manufacturing capacity in China.
Xiao also said the ministry was addressing solutions to the auto chip supply shortage, as well as improving the country’s charging network and developing EV sales in rural markets, according to Reuters.
China's market regulator has fined three auto chip sales companies for driving up prices. The lengthy global chip shortage has impacted major automakers, including Ford Motor, Honda Motor, Daimler and Volkswagen, leading to production shutdowns.