Home Startups Electric vehicles: Chinese startups are going bankrupt – that’s good

Electric vehicles: Chinese startups are going bankrupt – that’s good

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The technological big bang that hit China’s electric vehicle market at the end of the last decade appears to be running out of steam. Believe it or not, this is good news for the industry.

A group of around 500 electric vehicle manufacturers registered in 2019 were reduced to about a fifth of this size, Bloomberg News reported Tuesday. The top four players now have a 60% market share and the Herfindahl-Hirschman index, a measure used by antitrust regulators to determine whether a market is trending toward an oligopoly, suggests that the sector is no longer competitive and that it is rather moderately concentrated.

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