China’s electric car industry booming | Daily News

China’s electric car industry booming

BEIJING — While investors watched dramatic surges in the stock prices of Chinese electric car makers like Nio and Xpeng, tens of thousands of companies jumped on the bandwagon as the industry grew, according to business database Qichacha.

The number of new Chinese businesses related to “new energy vehicles” surged by 81,000 this year through mid-August, bringing the total to more than 321,000, Qichacha said in a report. The growth this year comes after 78,600 businesses entered the industry in 2020, during the height of the coronavirus pandemic in China, the database showed.

New energy vehicles refers to a general category consisting primarily of pure-electric and hybrid-powered cars. China is the world’s largest market for automobiles, and would like 20% of new cars sold to be new energy vehicles by 2025.

Shares of major electric car makers fell Monday after China’s Ministry of Industry and Information Technology indicated there could be sector consolidation. (China today)

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