China’s EV startup explosion was fuelled by generous subsidies, tax breaks, and easy access to local production licenses between 2015 and 2019. According to the International Energy Agency (IEA), this led to an overcrowded market of more than 500 ventures, many lacking core technology, supply chains, or scale.
From 2020 onwards, the Chinese government began phasing out its EV subsidy program. This policy shift came just as the country entered a price war, led by aggressive pricing from giants like BYD and Tesla. The combination of reduced state support and brutal price competition proved fatal for many underfunded startups.
Global barriers and European friction
Next to ‘the national challenges’, international expansion has proven…
