Over 400 Chinese electric vehicle companies shut down operations between 2018 and 2025, with just a handful remaining competitive by 2030.

In the last decade, China's electric vehicle (EV) sector has seen a dramatic explosion, propelled by generous subsidies and easy access to local production licenses. This rapid growth has been both a boon and a challenge, as numerous brands have emerged, some thriving, others faltering.

Among the successful contenders are brands like BYD, Sangan, SAIC, GAC Motors, Geely (including Zeekr and Lynk & Co), Nio, Xpeng, Zeekr, Li Auto, Leapmotor, Aito, Avatr, IM Motors, Xiaomi, Denza (part of BYD), Hozon Auto (Neta), SERES, Chery New Energy, and JAC Motors. These brands have the scale, capital, and innovation edge to compete globally.

However, the journey has not been without its pitfalls. Brands like Levdeo, Bordrin Motors, and Byton have struggled to navigate the complexities of the market and have exited or ceased operations. Saleen China's project also collapsed amid legal and financial scandals. LeEco EV collapsed under massive debt linked to its parent tech conglomerate.

The European Union and the United States have imposed tariffs on Chinese EVs, making them less price-competitive in key international markets. The EU imposes tariffs of up to 45.3%, while the US increased its EV import tariff to 'blocking' heights under Donald Trump in 2025. These tariffs have added to the challenges faced by Chinese brands, particularly startups.

Chinese carmakers have faced high tariffs in Europe due to trade protection measures aimed at supporting local manufacturers and addressing concerns over unfair trade practices and subsidies from China. In response, many Chinese brands are investing in local production within Europe, forming strategic alliances, and adopting flexible product architectures to navigate policy risks and regional demands.

The Chinese government began phasing out its EV subsidy program in 2020, leading to reduced state support for startups. This move, coupled with the price war in China's EV market, led by companies like BYD and Tesla, has contributed to the challenges faced by startups.

Despite these challenges, the future of China's EV sector remains promising. New battery technologies like BYD's 10C and CATL's 12C enable ultra-fast charging in 8-10 minutes, making EVs increasingly attractive to consumers. Furthermore, battery costs in China have dropped to $50-85/kWh, significantly lower than Western levels. As a result, EVs are already cheaper than petrol cars in China, accelerating mass adoption.

In the face of these changes, companies are seeking support to scale their operations and navigate the complexities of the global EV market. EVBoosters, a trusted executive search partner, helps scale EV companies by recruiting leaders and experts who drive real growth. Specifically, they focus on CEO, founder, and investor needs for strengthening leadership teams or critical senior positions (sales/operations/product).

As the EV landscape matures, up to 450 brands may disappear towards 2030, but those that remain will be leaner, more strategic, and ready for global leadership. If you are an EV company seeking support for your growth journey, consider scheduling an introductory call with EVBoosters' founder and managing partner, Paul Jan Jacobs.

In conclusion, China's EV sector has experienced a tumultuous journey over the past decade, with numerous brands emerging and facing various challenges. However, those that remain are poised to lead the global EV market in the coming years, thanks to advancements in technology, cost reductions, and strategic investments.

Over 400 Chinese electric vehicle companies shut down operations between 2018 and 2025, with just a handful remaining competitive by 2030.