Part 5/8:
The intensity of competition is underscored by a plethora of domestic brands struggling to maintain sales. Reports reveal that over 40 domestic EV brands are selling fewer than 5,000 units per month, indicating a concerning level of brand proliferation and underutilized capacity in the market. With some companies like HiFi Automobile facing restructuring, analysts are raising alarms about potential widespread collapses within the sector.
Regulatory interventions are also tightening, particularly in regions like Chongqing, where questionable car loan practices have come under scrutiny, adding further pressures on dealers reliant on financing incentives.
Global Reputation and Ethical Concerns