Posted 2/19/2024, 6:32:50 PM
China's Crowded EV Market Squeezes Out Smaller Automakers Like HiPhi
- Smaller automakers like HiPhi are struggling financially in China's competitive EV market, with HiPhi suspending all production for 6 months
- Only a few major players like BYD and Li Auto are profitable; over 15 EV startups have collapsed or are near bankruptcy
- HiPhi has an uncertain future in China and for its plans to expand to Europe and a Saudi Arabia joint venture
- The Chinese EV market grew 37% in 2022 but is forecast to slow dramatically, with January sales down 47.9% year-over-year
- HiPhi and other startups have a combined annual production capacity of 10 million EVs, while 2022 sales were 8.9 million units