• About Us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI English
TFI हिन्दी
Friday, August 19, 2022
TFIGlobal
TFIGlobal
Right Arm. Round the World. FAST.
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • Premium
  • Indo-Pacific
  • Americas
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • Premium
TFIGlobal
TFIGlobal
No Result
View All Result

China’s Electric Vehicle sector goes completely bust

Akshay Narang by Akshay Narang
September 28, 2021
in China
Reading Time: 3 mins read
0
China Electric Vehicle industry
8.5k
VIEWS
Share on FacebookShare on Twitter

China’s industrial growth and tech ambitions are a major scam. China keeps building a lot of hype around its major projects and tech ambitions. However, more often than not these projects turn out to be a major flop. The case of China’s Electric Vehicle industry is not very different.

Over the recent past, the Western world has been quite fascinated by China’s Electric Vehicle industry, partly due to the CCP propaganda about cutting emissions and promoting clean technology and partly due to the euphoria generated by Tesla’s early successes in the Electric Vehicle industry. However, with the Communist nation going through a serious power shortage crisis, the Electric Vehicle industry bubble has burst all of a sudden.

Also Read

A deserted church in Ottawa has scared the living daylights out of Trudeau

The new Kenyan President is set to snatch Mombasa and other dreams from Xi Jinping

Evergrande- a case in point

The world has started reading about Evergrande, a Chinese real estate major, only recently. Evergrande is in a deep debt crisis and its downfall is likely to trigger a contagion effect in the Chinese economy.

However, Evergande had made it to the news last year over an unsuccessful Electric Vehicle venture. In April, Bloomberg reported that China Evergrande New Energy Vehicle Group Ltd., an Electric Vehicle startup set up by the real estate major worth $87 billion greater than Ford Motor Co. and General Motors Co. failed to sell even one automobile.

Bill Russo, the founder and chief executive officer of advisory firm Automobility Ltd. in Shanghai had said, “It’s a weird company.” Russo added, “They’ve poured a lot of money in that hasn’t really returned anything, plus they’re entering an industry in which they have very limited understanding. And I’m not sure they’ve got the technological edge of Nio or Xpeng.”

On Monday, Nikkei reported that China Evergrande Group’s electric car unit has terminated plans for a share offering amid concerns about the falling fortunes of the parent company of the Electric Vehicle unit.

China’s Electric Vehicle sector failure is a common phenomenon

Russo described Evergrande’s EV startup as “weird”. However, the EV breakdown in China is more of a general phenomenon. China’s Electric Vehicle industry is dying because of the severe power shortages in the country. SCMP reported that power cuts in the country could put a dent in the booming Electric Vehicle industry of the country. The suspension of charging stations in parts of China kept some battery-powered cars off the roads.

In a major embarrassment for China, some electric cars failed to hit the roads since last week because some charging stations suspended operations during peak hours due to power outages.

Moreover, power blackouts in over 10 Chinese provinces across the Chinese mainland are likely to discourage the people of China from shifting to EVs. Zhang Fan, a car insurance broker in Jilin province said,  “In northeast China, electric cars have been greeted with a lukewarm response for many years.”

Fan added, “The power cuts could further siphon off buying interest in electricity-powered vehicles.” Ironically, EVs were supposed to be the world’s answer to unclean energy and burning of fossil fuels but they have failed in China because the Communist nation is failing to produce enough thermal energy in lack of coal supplies.

Foreign investments in Chinese Electric Vehicle sector bound to dry up

Meanwhile, Chinese EV startups like the New York-listed Chinese upstart Nio Inc. have not been profitable since their inception. And you cannot compare the prolonged unprofitability of Chinese EV startups with Tesla. Remember, Tesla was a pioneer in the Electric Vehicle industry and had crafted a brand image for itself. On the other hand, Chinese EVs have to win people’s trust.

Also, German automobile majors like BMW AG, Volkswagen AG and Mercedes-Benz AG-owner Daimler AG have started to scale up their own operations in the Electric Vehicle industry. At the end of the day, you cannot expect Chinese enterprises like Nio, XPeng and Li Auto Inc. to match Tesla or any one of the iconic German automobile brands.

On top of China’s EV woes, the power outages in China are destroying its capability and infrastructure to maintain a huge Electric Vehicle industry. All of a sudden, China’s EV bubble seems to have burst and this is going to drive foreign investors far away from China’s electric vehicle startups.

ShareTweetSend
Previous Post

Biden administration is trying to bury the truth on Haitian migrants’ whipping story to push its sick agenda

Next Post

15 Best No Longer Human Quotes

Also Read

The new Kenyan President is set to snatch Mombasa and other dreams from Xi Jinping

The new Kenyan President is set to snatch Mombasa and other dreams from Xi Jinping

August 18, 2022
One Indian business tycoon is killing Chinese BRI with taking down one project after another

One Indian business tycoon is killing Chinese BRI with taking down one project after another

August 18, 2022
Albanese trusted the Chinese as Australia’s natural business partners, got backstabbed

Albanese trusted the Chinese as Australia’s natural business partners, got backstabbed

August 17, 2022
South Korea points missiles towards China and Xi is already scared

South Korea points missiles towards China and Xi is already scared

August 16, 2022
Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Trending
  • Comments
  • Latest
UK power

UK is doomed, and Belgium is making fortunes out of it

July 29, 2022
Iraq kicks out China’s biggest energy company

Iraq kicks out China’s biggest energy company

August 12, 2022
South Korea obliterates China’s biggest economic weapon

South Korea obliterates China’s biggest economic weapon

July 23, 2022
Russia crashes West’s chip infrastructure by turning off Helium and Neon supplies

Russia crashes West’s chip infrastructure by turning off Helium and Neon supplies

June 3, 2022
China gets kicked out of Mexico’s $10 billion train project

China gets kicked out of Mexico’s $10 billion train project

June 2, 2022
church, trudeau

A deserted church in Ottawa has scared the living daylights out of Trudeau

August 18, 2022
The new Kenyan President is set to snatch Mombasa and other dreams from Xi Jinping

The new Kenyan President is set to snatch Mombasa and other dreams from Xi Jinping

August 18, 2022
Trudeau Matters But Revenue Matters More: CTV Fires op Trudeau-Loving Journalist

Trudeau Matters But Revenue Matters More: CTV Fires op Trudeau-Loving Journalist

August 18, 2022
Liz Truss’s one statement that could make Sunak the next PM of UK

Liz Truss’s one statement that could make Sunak the next PM of UK

August 18, 2022
Putin is going to unleash his Belarus Module on Ukraine’s Independence Day

Putin is going to unleash his Belarus Module on Ukraine’s Independence Day

August 18, 2022
Youtube Twitter Facebook
TFIGlobal
  • About us
  • Contact Us
  • Terms of use
  • Privacy Policy

©2022 - TFI MEDIA PRIVATE LIMITED

No Result
View All Result
  • Indo-Pacific
  • Americas
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • Premium

©2022 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Follow us on Twitter

and never miss an insightful take by the TFIGlobal team

Follow @tfiglobal
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.