China’s electric vehicle (EV) market is a dynamic and rapidly evolving landscape. With over 100 estimated EV brands vying for consumer attention, the 2024 Beijing Auto Show showcased the impressive advancements and diverse offerings within the industry. However, the sheer number of players raises a critical question: Is this level of competition sustainable?
While the technology behind EVs is undeniably beneficial for the environment compared to internal combustion engine (ICE) or hybrid vehicles, the long-term viability of so many EV startups and brands in China remains uncertain. The market has already witnessed the exit of several companies, including some significant players, highlighting the intense pressure and challenges faced by these businesses.
The Shanghai Auto Show, alternating annually with the Beijing Auto Show, has previously displayed vehicles from nearly all of China’s numerous EV brands. The impressive technology and designs are undeniable, but the reality is that not all these companies can survive in such a competitive environment. Consolidation appears to be not just likely, but inevitable.
Here are three EV brands that had a presence at a recent Beijing Auto Show but are now facing significant challenges or have already begun to falter:
Ji Yue emerged as a joint venture between Baidu, China’s equivalent of Google, and Geely. Unlike some of Geely’s other tech-focused brands, such as Polestar and Zeekr, Geely primarily provided the vehicle base, while Baidu contributed its expertise in autonomous driving technology. The Ji Yue 01, a hatchback, boasted impressive driver-assistance features, promising near Level 3 autonomous driving capabilities at a competitive price point. It utilized the same SEA platform found in many Geely, Zeekr, Volvo, and Lynk & Co EVs.
Ji Yue 07
Despite its technological advancements, the Ji Yue 01 struggled to achieve significant sales, barely exceeding a few thousand units per month. The launch of the Ji Yue 07 sedan did little to improve the brand’s performance. Internal issues further plagued the company, with reports of employees demanding unpaid wages and a lead engineer advising colleagues to seek employment elsewhere. While not officially defunct, Ji Yue’s stores are closed, and the functionality of its driver-assistance features is questionable without manufacturer support.
Neta garnered attention at the Beijing Auto Show with the launch of the Neta L, a compact extended-range electric vehicle (EREV) priced at approximately $14,000. The brand offered a range of EVs and EREVs, including the stylish Neta S Hunting wagon. Initially, sales showed promise, and Neta expanded its reach into Southeast Asia and the Middle East and North Africa (MENA) regions through exports and local production. In 2024, the company sold over 60,000 vehicles.
Neta S Hunting Edition
However, 2025 brought significant challenges. Neta announced substantial layoffs, with some reports suggesting the complete dismantling of its R&D department. The brand maintains a social media presence, primarily focused on Brazil, Indonesia, and Thailand. A $215 million loan from the Thai government in March offers a glimmer of hope, but it remains to be seen whether this will be sufficient to sustain the company, particularly outside of China. Neta appears to be heavily reliant on export markets for its future, but its long-term survival remains uncertain.
Yuanhang, an upscale spin-off from Dayun, was present at the Beijing Auto Show. However, its vehicles exhibited signs of being underdeveloped, featuring generic designs and underwhelming interiors, despite their flashy appearance. Similar to Neta, Yuanhang implemented significant layoffs and struggled to achieve substantial sales figures, often selling only a few hundred units per month in China. While Yuanhang has not officially ceased operations, its prospects for a turnaround appear bleak.
Yuanhang Y6
These three examples represent just a fraction of the EV brands that are facing difficulties in the highly competitive Chinese market. Other companies, such as HiPhi, Aiways, and Evergrande Auto, have also encountered significant challenges or ceased operations. While China boasts a wealth of innovative EVs and EV brands, the sheer number of companies pursuing similar goals is unsustainable, even with government support and a vast potential customer base.
Market consolidation is inevitable. It would not be surprising to see larger Chinese EV manufacturers either exit the market or merge with competitors, especially if export markets remain resistant to Chinese EV imports. This consolidation could lead to a wealth of intellectual property becoming available. Perhaps European or American startups could acquire this IP to develop their own EVs domestically, effectively “dropshipping” car designs and technologies.
Given the advancements and innovations witnessed in China’s EV sector, such a strategy might not be as far-fetched as it initially seems. The China EV market is poised for significant changes, and the coming years will likely see a reshaping of the industry landscape.
| Brand | Key Model | Current Status |
|---|---|---|
| Ji Yue | Ji Yue 01, Ji Yue 07 | Stores closed, uncertain future |
| Neta | Neta L, Neta S Hunting | Layoffs, focusing on export markets |
| Yuanhang | Yuanhang Y6 | Struggling sales, uncertain future |
