Shanghai Auto Show: China’s underachieving EV start-ups skip premier event as they fade into oblivion

At least six promising start-ups – WM Motor, Evergrande New Energy Auto, Qiantu Motor, Aiways, Enovate Motors and Niutron – did not take part in the show

Of the 500 or so EV start-ups launched over the past decade, only around 200 have received certification from Beijing to mass produce cars

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People visit the Lexus booth at the Shanghai Auto Show on Thursday. The 10-day event ends on April 27. Photo: AFP

Published: 7:30am, 21 Apr 2023

Some promising Chinese electric vehicle (EV) start-ups, once seen capable of shaking up the market, are absent from this year’s Shanghai Auto Show as new technologies and tougher competition reshape the industry landscape.

At least six companies – WM Motor, Evergrande New Energy Auto, Qiantu Motor, Aiways, Enovate Motors and Niutron – skipped the 10-day marquee event that started on Tuesday, missing a golden opportunity to build their image at the nation’s biggest car show.

These carmakers either have closed their factories or stopped taking new orders as a bruising price war takes a toll in the world’s largest automotive and EV market.

“Overcapacity is emerging as a big issue in the EV industry,” said Cao Hua, a partner at private-equity firm Unity Asset Management, who visited the show on Thursday. “The auto exhibition provides a vivid snapshot of the market. Small and underachieving players will not be able to survive the cutthroat competition.”

Volkswagen’s electric ID. Next was unveiled at an event ahead of the Shanghai Auto Show on Tuesday. Photo: Reuters

Over the past 10 years as many as 500 EV start-ups mushroomed in China, hoping to grab a share of the fast-growing market and take advantage of the government’s tax breaks and cash subsidies to encourage the use of the environment-friendly cars.

Currently, only about 200 EV companies are certified by Beijing to mass produce electric cars, which include conventional carmakers like SAIC Motor and start-ups such as Nio and Xpeng.