China To Clamp Down On Companies Producing Electric Vehicles

Every few months it seems like there’s another automotive company which promises to take on Tesla or build an electric supercar. Many of these companies are from China and a few of them are rarely heard from again.

Chinese officials have apparently taken notice as Reuters is reporting the country is clamping down on new electric vehicle firms. As part of this process, the country will stop issuing approvals for companies seeking to build electric vehicles.

The halt is expected to last until early next year and it will give officials time to review licensing procedures. As one business person explained, “The government wants to give approval to only truly capable and serious players.”

The problem extends beyond companies that shill vaporware as the report indicates some firms are selling poorly made models to cash in on subsidies while others are simply cheating the system outright.

In order to combat the problem, China could begin to reexamine companies which have already been given a license to build electric vehicles. If it is determined the company cannot launch a successful and reliable product, their license could be revoked.

  • Six_Tymes

    they are so easy to make compared to gas, so much less parts needed and the motors and battery packs can be bought. soon we will see make your own cars with pieces that are easily mix and matched.

    • EyalN

      and they are so expensive to build. Tesla are losing money on every car they make, the chinese are not so stupid.

      • scjeff

        Not true, a bit of internet research turns up the following from Motley Fool:
        “Tesla’s gross margin is actually quite impressive and higher than rivals Ford (NYSE:F) and General Motors (NYSE:GM), specifically because Tesla only plays in the niche luxury segment right now. On a gross profit basis, Tesla made over $18,000 per vehicle last year. The operating margin is where Tesla lags, which should expectedly persist as Tesla remains in growth mode.”

        • EyalN

          how do they make profit on every car if they never made profit?

        • gary4205

          Tesla has never made a single red cent of profit DESPITE billions of taxpayer subsidies, and out right gifts of hardworking taxpayer money to retail buyers.

          Wise up. Tesla is a scam, and Musk is a con man.

          • BlackandWhiteRhino

            It’s amazing what one perceives when statements are written completely out of context.The incentives were from the government to incentivize people to buy electric to help PAY for the damage caused by the oil corporations. How much do you think it will cost to move all the coastal cities in the world due to flooding? The governments around the world are hoping these few “billions” vs trillions are money better spent. If you think tax payers are getting the shaft now, just wait and see what would happen if the fossil fuel industry and the big three would do left unchecked. There’s a reason why many states have told the auto industry that they’re not going roll back fuel economy standards. Besides, if the majority of the population drive electric as local transport, car makers won’t be harassed as much for making niche ICE sports cars as their CAFE numbers will be high enough as an aggregate.

      • It’s losing money the same way a builder “loses money” as they take the profit from the 1st building to build 10 more. Tesla is massively expanding it’s factory. It’s building the giga factory. Thousands of charging networks all over the US, and Europe. So every dime it makes is immediately spent, just like a builder using the profits from the 1st construction to finance the other 9, sequentially. So on paper the company is profitless, but once Tesla has enough factories to supply the demand, that’s when the clear and free profits will roll in. That’s at least another 10 years into the future. You don’t build a global car company in a day.

        • gary4205

          Home builders don’t steal BILLIONS from hard working taxpayers to fund their unviable companies.

          In a just world everyone involved with Tesla would be in jail.

          • BlackandWhiteRhino

            Non sequitur

  • WG

    They should be clamping down on copycats first… e.g. the Land Rover copycat Land wind and the Porsche copycat Zoyte.

    • FlameWater

      last time I checked China law does not acknowledge any of these vehicles as copy cats

    • Galaxium


      Nothing was done for both those copycat brands. Something along the lines of “if the engine or inner components are different, then it’s a different product”

      • Kash

        the Evoque was thrown out because JLR showed the car as a concept prior to copyrighting the design.

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