China is now working to build a Tesla type vehicle only 10 years after the government followed the ideas of an engineer named Wan Gang, an ex-Audi employee who encouraged Beijing to build EVs. As a result, China became a leader in battery technology and the largest consumer of electric vehicles. Venture Capitalists poured in billions and the industry started to boom. However, over the past decade, only a hand full of survivors remain and the economy in China is seeing a slowdown while the auto industry is experiencing a slump – the focus on electric vehicles is fading fast. New players are rising and some are looking for a resurgence but with economic weakness in 2020, just how much will be allocated to the auto market is the key question.
Despite sales of 330,000 vehicles in 2015, it was found by the Ministry of Finance that five companies misused subsidies and cheated the government. This is not uncommon in China, and some are now questioning the effectiveness of government policy spurring research and development. While Chinese batteries are now the best on the market, their elective vehicles are now struggling, but never count these firms out.