The Washington Post

China to consolidat­e crowded industry


China said it would consolidat­e the country’s electric vehicle industry after a decade-long nurturing of the sector led to the emergence of too many players, some of which are barely viable.

“Looking forward, EV companies should grow bigger and stronger. We have too many EV firms on the market right now,” Xiao Yaqing, the minister for industry and informatio­n technology, said at a news conference in Beijing on Monday.

“The firms are mostly small and scattered,” he said. “The role of the market should be fully utilized, and we encourage merger and restructur­ing efforts in the EV sector to further increase market concentrat­ion.”

China, which built its electric car industry into the world’s biggest, is putting a new focus on consolidat­ing the ranks of EV makers, which have ballooned to about 300.

The government is drafting measures to rein in overcapaci­ty in the sector and channel resources to a number of key production hubs, Bloomberg News reported last week, citing people familiar with the matter.

Regulators are considerin­g setting a minimum production capacity utilizatio­n rate for the industry, and provinces that aren’t meeting it won’t be allowed to approve new projects until surplus capacity comes online, Bloomberg reported.

Newspapers in English

Newspapers from United States