China’s EV Market Hits Rough Patch: Over 100 Companies Struggling Amid Price Wars and Subsidy Cuts

In China, the electric vehicle (EV) market is currently witnessing intense competition, with over 100 companies vying for dominance. Amidst fierce price wars, some of these companies struggle financially and face bankruptcy. This has led to a range of issues, including drivers being unable to use smartphone apps to control essential vehicle features like car locks and air conditioning, according to a report by Gizchina published on August 30.

According to the China Automobile Dealers Association, the wave of bankruptcies and shutdowns among EV manufacturers has left around 160,000 drivers in a difficult situation.

For instance, Shanghai-based EV manufacturer WM Motor, which filed for bankruptcy in October 2023, previously offered a smartphone app that enabled users to remotely control car locks and air conditioning and view the driving range and charging status on their vehicle’s dashboard. However, following WM Motor’s bankruptcy, these features, including the app, have become inoperable. Also, some users have reported that in-car stereos requiring internet connections have stopped functioning.

WM Motor has since apologized for the issue and reported resolving it. However, some drivers still say that accessing basic functions like vehicle entertainment remains challenging and have noted that WM Motor’s app is no longer available on the Chinese app store.

International media outlet Rest of World reported that as competition in China’s EV market heats up, many EVs increasingly depend on smartphone controls and cloud services for software updates. This reliance has raised significant concerns about these vehicles’ long-term maintenance and reliability.