Nio Exec Says China’s Dozens Of EV Startups Will Dwindle To 3 In 5 Years
The boom of the “New Energy Vehicle” sales (think plug-ins) in China has caused the flowering of numerous EV startups, most of which will not necessarily survive beyond 2020 according to…one of those start-ups.
Nio chairman William Li stated that two, maybe three will be still around in five years from now, selling cars in a scale, required to stay in business.
“A car business is the world’s toughest business to start,” Chairman William Li said in Chinese on the sidelines of the Shanghai auto show.
“If you look in five years, there won’t be more than two or three companies reaching the minimum level of sales needed.”
The company is backed by nearly 40 investors (up from just 5 or 6 in the beginning).
“He said there is an opportunity for Nio to succeed by focusing only on electric cars and offering better service and digital functionality, areas where traditional car makers have difficulty.
“Traditional car companies aren’t seriously doing this,” Li said. “Their focus is still on hybrids and traditional cars.””