China 's electric vehicle start - ups ca n't build their own cars because , out of the near 500 EV manufacturers which have been helped by government incentives , only eight have the two key licences needed to begin manufacturing . This highlights the challenges that start - ups face in China 's vehicle market . Although new EV makers need the first licence to establish a product line and the second to sell vehicles , established auto makers need neither . In recent years, China’s government has encouraged more domestic companies to produce electric vehicles. Getting these licences is proving a huge challenge so the EV start - ups are having to form partnerships with older auto makers .
China 's electric vehicle start - ups ca n't build their own cars because , out of the near 500 EV manufacturers which have been helped by government incentives , only eight have the two key licences needed to begin manufacturing . This highlights the challenges that start - ups face in China 's vehicle market . Although new EV makers need the first licence to establish a product line and the second to sell vehicles , established auto makers need neither . Getting these licences is proving a huge challenge so the EV start - ups are having to form partnerships with older auto makers .