China to consolidate overcrowded electric vehicle industry

Beijing, Sept. 13 (BNA) The Minister of Industry and Information Technology, Xiao Yaqing, said on Monday that China has a “too many” electric car makers, and that the government will encourage consolidation.

The minister also said that China will improve the charging network and develop electric vehicle sales in rural markets.

The government’s promotion of green vehicles to cut pollution has prompted electric car makers such as Nio Inc, Xpeng Inc and BYD Co Ltd to expand manufacturing capacity in China, according to Reuters.

Xiao said the ministry is speeding up alternative solutions to address the auto chip supply shortage.

Last week, China’s market regulator fined three car chip companies for raising prices, in a move to help car production in the world’s largest auto market.

A prolonged global shortage of chips has affected major automakers, including Ford Motor, Honda Motor and Volkswagen, forcing many to slow down or scale back production.

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