Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
China Making Headway on Its First Long-Haul Jetliner: Reports
Hong Kong, Singapore Welcome Back Transit Travelers
BYD Semiconductor Unit Gets Charged with Major New Investment
LATEST
Video Streamer Bilibili Plans to Issue $650 Million in Convertible Bonds
Revenue Growth, R&D Spending Slow for China Internet Majors
Tencent to Invest $70 Billion in ‘New Infrastructure’ Supporting AI and Cloud Computing
BYD Semiconductor Unit Gets Charged with Major New Investment
Hong Kong, Singapore Welcome Back Transit Travelers
China Making Headway on Its First Long-Haul Jetliner: Reports
Stay-at-Home Blues During Covid-19 Turbocharges Livestreaming Game Streamer DouYu
Tencent Takes 20% Stake in Japanese Video Game Firm
Alibaba, Baidu and Xiaomi Dominate China’s Shrinking Smart Speaker Market
TikTok's In-App Revenue Skyrockets During Lockdowns
Food Delivery Giant Meituan’s Sales Beat Estimates
Xiaomi Increases Investment in IoT Company
Amazon Unveils Its First Solar Power Project in China
China ‘Unlikely’ to Reach Goal of 70% Self-Sufficiency in Chip Production, Report Says
Pandemic Lockdowns Boost Sales on Alibaba, Pinduoduo
Didi to Use AI to Protect Against Covid-19 in Latin America
Nestle to Build Its First Plant-Based Food Factory in China
Alibaba doubles down on smart speakers with $1.41bn investment
Luckin Stock Faces Wipeout in Rush to Sell Before Delisting
Xpeng Wins License to Produce Its Own Long-Range P7 Electric Cars
Tough Time Ahead for EV Startups, Executive Says

By Liu Yukun and Han Wei / Apr 11, 2019 03:00 AM / Business & Tech

Li Xiang. Photo: IC

Li Xiang. Photo: IC

China’s flourishing electric-vehicle startups are facing a tough time with greater challenges to obtain funding as investors have turned more cautious on the industry, said Li Xiang, CEO of EV startup CHJ Automotive.

A large number of players will be forced out of the market in the coming year, and 90% of investors will lose money, Li warned Tuesday at a conference in CHJ’s plant in Changshu, Jiangsu province.

CHJ is among a number of companies emerging in China over the past few years to tap opportunities in EV manufacturing. It is one of the few players that are expected to deliver models to the market by the end of 2019. CHJ unveiled its first EV model in October.

Li said he expected sales of the new model, a hybrid SUV, to reach 100,000 units by 2020 and said the number of orders received in the next three months will be crucial for the business.

While EV startups are struggling to turn profits, the Chinese government’s decision to greatly cut subsidies is posing more challenges, analysts said.

In March, CHJ’s rival Nio Inc. said its net losses widened by 92% for 2018 to $1.4 billion, while losses in the last quarter grew 102.1% to $509.5 million.

Related: China’s Cut to Electric-Car Subsidies Is the Biggest in Five Years


Share this article
Open WeChat and scan the QR code