China 's electric vehicle start-ups can't make their own cars because, out of the near only eight EV makers which have been helped by government incentives, two have the two key licences needed to begin manufacturing. This highlights the challenges that start-ups face in China 's vehicle market. WM Motor, a three-year-old startup based in Shanghai, took a different approach: Early last year it acquired the well-established carmaker Huanghai in the northern city of Dalian—and now it has its own plant and doesn’t need the two licenses. Although new EV makers need the second 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.
China 's electric vehicle start-ups can't make their own cars because, out of the near only eight EV makers which have been helped by government incentives, two 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 second 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.