How China is trying to salvage its bruised electric-car industry
China is quietly reinforcing its car industry, pushing a range of support measures and levers to help salvage its world-leading push into electric vehicles.
The coronavirus pandemic and oil-price slump slammed the nascent industry for EVs, which until this year looked like the undisputed future of transportation. Sales have declined for 10 straight months in China and are forecast to drop 14% this year to fewer than 1 million units, according to BloombergNEF. But rather than abandon an industry it plowed billions of dollars into while becoming the biggest global market for new-energy cars, China’s government is doubling down.
More than 20 provinces, as well as the central government, have rolled out packages meant to stimulate demand for EVs. And that’s had an effect: the sales decline started to show signs of easing in recent months.