Government support created a large but fragile EV startup ecosystem in China, ripe for consolidation

September 26, 2018 | Case Study

In 2009, China became the largest automotive market in the world, and it hasn't looked back, growing an average of 10% annually since then. This growth intersected with a strong push from the Chinese government, through generous financial incentives for buyers and vehicle manufacturers, to be a leader in electric vehicle development. The result was wildly successful, as China made up 49% of global plug-in vehicle sales in 2017. China looks to continue this momentum, with a shift in support from generous subsidies to financial penalties for manufacturers that don't make plug-ins set to begin in 2019. Growth thus far has been led by large companies, including BYD, BAIC, SAIC, and Geely.