Out of around 100 local EV startups, just 11 managed to get funding last year. Recently, Byton closed its operations without selling a single car.
(Hindustan Times)
Aman's key takeaways:
- EV startups like Nio will be most impacted by Tesla's entry as they target premium EVs.
- Chinese government restricted the entry of (standalone) foreign players, which impacted the overall evolution of domestic automakers. Companies like Tesla will change this and promote competition, forcing domestic EV companies to innovate, benefiting the domestic EV market.
- Increasing competition and falling sales can lead to market consolidation in the near future.