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CNBC

China's multibillion-dollar electric car companies are heading for a make-or-break moment

China's multibillion-dollar electric car companies are heading for a make-or-break moment

The country is the largest market for such vehicles, thanks mostly to government subsidies. It's unclear whether Chinese players can survive when the subsidies end.

  • dicembre 17, 2018
  • Tempo di lettura min.

CNBC

China's multibillion-dollar electric car companies are heading for a make-or-break moment

Two of the largest start-ups in the industry — both Chinese — launched new passenger vehicles in the last week. The announcements come with less than two years to go before Beijing's subsidies are set to end, and as better-known brands such as Tesla move into the massive Chinese market.

"Given the size of the market, the Chinese (original equipment manufacturers) have the opportunity to go down the cost curve and build an advantage globally," Pierre-Henri Boutot, said a partner at Bain & Company.

"There is an inflection point coming in 2020," he said, explaining that's when he expects consumers will find battery-powered electric vehicles just as competitive as internal combustion ones from a total cost perspective.

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