Foreign media: By 2026, dozens of electric vehicle (EV) manufacturers in China may face pressure to go bankrupt or cut back their operations.
Analysts point out that due to weakening domestic demand and the expiration of subsidies and tax incentives, it is expected that the Chinese car market will see its first sales decline since 2020 next year.
Currently, about 50 local electric vehicle manufacturers are in loss, and they need to decide by 2026 whether to continue operating or exit the market.
China will announce in January of next year whether to extend the 20,000 yuan (about 2,852 US dollars) trade-in subsidy, while the current 10% purchase tax exemption for electric vehicle buyers will be adjusted to 5% starting next year, and will return to 10% by 2028.
Original text: toutiao.com/article/1852744907914252/
Statement: This article represents the views of the author alone.