China’s EV industry calls on regulators to curb the back-seat driving

AUTO experts and industry executives in China are calling on regulators to explore a market-based approach to governing electric-vehicle (EV) makers’ manufacturing qualifications, as the sector confronts an influx of inexperienced and ultimately unsuccessful firms amid the country’s push towards electrification.

The success of China’s EV industry has been widely viewed as the result of years of Beijing’s supportive policies, including the use of subsidies to spur demand, and instruments such as a strict permit system to better manage capacity.

However, regulators have been considering tightening rules over carmaking licences, which would effectively prohibit companies from making use of workarounds such as partnering with original equipment manufacturers (OEMs) or acquiring permit-holders, a source close to policymakers told Caixin.