Artificial Intelligence
All parties compete for 50 million large-scale market electric vehicle industry
In Wuxi, a major hub for electric vehicle manufacturing in China, a significant portion of local manufacturers are struggling. According to a senior member of the Jiangsu Bicycle Association, approximately 60% of local companies are operating at a loss, and over 100 have already shut down. This situation is driven not only by the lack of scale but also by outdated industry standards that are no longer aligned with market needs. The ongoing debate around new regulations has created uncertainty, making it difficult for public companies to plan and grow.
The existing national standard for electric bicycles, set in 1999, limits speed to under 20 km/h and weight to no more than 40 kg. However, consumer demand has shifted toward faster and heavier models, leading many manufacturers to bypass these rules. Meanwhile, the National Development and Reform Commission is working on new classification standards, which could reclassify many electric vehicles as motorized vehicles, requiring licenses and registration—adding costs and complexity for consumers.
This regulatory confusion has led to a wave of industry consolidation. Of the 1,800 electric vehicle companies in China, one-third are facing closure or restructuring, while 60% are operating at a loss. Despite this, the long-term outlook remains positive. Industry leaders predict that the national electric vehicle market will reach 50 million units by 2010, attracting both domestic and foreign investment.
Some large domestic manufacturers, like Xinri Group, are actively seeking to expand through listing on the SME board, aiming to become industry leaders. Meanwhile, international players such as Japan’s Suzuki and Yamaha are entering the Chinese market through joint ventures or partnerships. As the industry matures, smaller, less compliant firms are being pushed out, allowing stronger players to gain market share and drive innovation.
This period of transformation, though challenging, presents opportunities for those who can adapt and meet evolving standards. With clearer regulations and increased investment, the future of the electric vehicle industry in China looks promising.
Guangzhou Chengbian Chemical Technology Co., Ltd. , https://www.gzcbct.com