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 .
China's electric vehicle start-ups can't make their own cars because, out of the near 500 EV makers 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 production line and the second to sell vehicles, established car makers need neither. Getting these licences is proving a huge challenge so the EV start-ups are having to seek partnerships with older auto makers.