Some of the country’s hottest EV startups, often likened to Tesla and aiming at the premium market, aren’t among them, highlighting the challenges they face in the world’s largest auto market. 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. The Chinese market is also dominated by state-owned enterprises (SOEs) such as China National Petroleum Corporation (CNPC) or Sinopec, both state-owned.
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. The Chinese market is also dominated by state-owned enterprises (SOEs) such as China National Petroleum Corporation (CNPC) or Sinopec, both state-owned.