Approximately 400 electric vehicle (EV) firms from China have shut down operations between 2018 and 2025. A small number of these companies are expected to be the major players in the industry by 2030.

The electric vehicle (EV) industry in China has been a rollercoaster ride, with several brands experiencing success and failure. One of the most notable collapses was LeEco EV, which crumbled under massive debt linked to its parent tech conglomerate. Similarly, Singulato Motors and HiPhi (Human Horizons) halted production due to financial issues, while Saleen China's project and Byton's operations were derailed by legal and financial scandals, and internal turmoil respectively. WM Motor filed for bankruptcy after failing to raise fresh capital and losing investor confidence. Qiantu Motors also struggled to scale its K50 electric sports car to a sustainable volume.

However, not all is doom and gloom. The European Union (EU) is witnessing an influx of Chinese EV brands investing in local production, strategic alliances, and flexible product architectures to navigate policy risks and regional demands. Brands like Bordrin Motors, despite declaring bankruptcy in 2021, are likely to be replaced by leaner, more strategic players ready for global leadership in a maturing electric vehicle landscape.

The Chinese government's decision to phase out its EV subsidy program in 2020 has led to reduced state support for EV startups. However, the industry has shown resilience, with battery costs in China dropping to $50-85/kWh, significantly lower than Western levels. New battery technologies like BYD's 10C and CATL's 12C enable ultra-fast charging in 8-10 minutes, providing a competitive edge.

Chinese carmakers are also leading the way in speeding up the process of bringing a new model from concept to production. While it takes 36+ months in Europe, Chinese carmakers can do it in just 18 months. This agility, coupled with the scale, capital, and innovation edge of brands like BYD, Sangan, SAIC, GAC Motors, Geely (including Zeekr and Lynk & Co), Nio, Xpeng, Zeekr, Li Auto, Leapmotor, Aito, Avatr, IM Motors, Xiaomi, Denza (part of BYD), Hozon Auto (Neta), SERES, Chery New Energy, and JAC Motors, positions them well to compete globally.

The price war in the EV market, led by giants like BYD and Tesla, has added to the challenges for underfunded startups. Moreover, the EU imposed tariffs of up to 45.3% on Chinese EVs, making them less price-competitive in key international markets. In response, Chinese brands are establishing local battery cell production to avoid these tariffs.

The US also raised its EV import tariff to 'blocking' heights under Donald Trump in 2025, further complicating the global landscape. However, with the European Union and the US accounting for a significant portion of the global EV market, Chinese brands will need to navigate these challenges to secure their position.

In the midst of this dynamic landscape, EVBoosters, founded by Paul Jan Jacobs, has been the trusted executive search partner for powering EV Charging Networks in Europe since 2018. As the industry continues to evolve, the role of such partners will become increasingly important in helping brands navigate the complexities and seize opportunities for growth.

Sources: International Energy Agency (IEA), McKinsey & Company, Rest of World, Financial Times, Bloomberg, Reuters, CNN Business, Automotive News China, Bloomberg New Energy Finance (BNEF)

Approximately 400 electric vehicle (EV) firms from China have shut down operations between 2018 and 2025. A small number of these companies are expected to be the major players in the industry by 2030.