‘Almost all Chinese EV builders are loss-making’

The popularity of EVs in China was, as with us, triggered by government measures. In addition, in China the government is directly or indirectly involved in companies in almost all cases. If there are to be EVs, there will simply be EVs. That part has already worked. According to Cleantechnica, about 30 percent of the cars sold in China are now equipped with a plug (including PHEV). We were also able to report last year that half of the electric cars sold worldwide come from China.

Still, it’s not all roses and roses, Automotive News reports. With the exception of BYD, all Chinese carmakers would in fact make significant losses, reaching into the hundreds of millions a year. Automotive News, for example, picks up Aion, a new EV brand from GAC. That saw its sales grow by 186 percent between 2019 and 2021, but during that time the loss also increased significantly. It now amounts to 1.4 billion yuan annually, or €199 million. At Changan, also state-owned, it’s even worse: 1.5 billion yuan, or about €213 million, goes down the proverbial toilet every six months. It’s not much better at hip startups like Nio and Xpeng, says Automotive News. Here too, both sales and losses are running high, a combination that will not make the accountant happy.

The Chinese car manufacturers cite the increased costs for, among other things, batteries and other expensive components as an important reason for the losses. The only exception to the notable rule is BYD, according to Automotive News China commentary. Not too surprising, given that that brand controls its own battery production and even makes its own chips. BYD also sells its batteries to other automakers and is said to be the second largest player in China, after the well-known giant CATL.