Chinese minister says China will integrate overcrowded electric vehicle (EV) industry in world’s largest auto market.
China’s promotion of greener vehicles to cut pollution gave birth to electric car makers such as Nio, Xpeng, and BYD.
China’s Minister of Industry and Information Technology, Xiao Yaqing has said that due to “too many” electric vehicle (EV) makers in China, the government will encourage the consolidation.
The minister also said China would improve its charging network and develop EV sales in rural markets.
The government’s promotion of greener vehicles to cut pollution has prompted electric car makers such as Nio Inc (NIO.N), Xpeng Inc (9868. HK), and BYD Co Ltd (002594. SZ) to expand manufacturing capacity in China.
Xiao said the ministry was speeding up alternative solutions to address an auto chip supply shortage.
China’s market regulator last week fined three auto chip sales companies for driving up prices, in a move to help auto production in the world’s biggest vehicle market.
A prolonged global chip shortage has affected major automakers, including Ford Motor (F.N), Honda Motor (7267.T), and Volkswagen (VOWG_p.DE), forcing many to idle or curtail production.