China to consolidate overcrowded electric vehicle industry (Minister)

BEIJING, Sept. 13 (Reuters) – China has “too many” electric vehicle (EV) manufacturers and the government will encourage consolidation, Industry and Information Technology Minister Xiao Yaqing said on Monday.

The minister also said that China will improve its charging network and expand sales of electric vehicles in rural markets.

The government’s promotion of greener vehicles to reduce pollution has prompted electric car makers such as Nio Inc (NIO.N), Xpeng Inc (9868.HK) and BYD Co Ltd (002594.SZ) to increase their capacity manufacturing in China.

Xiao said the ministry was speeding up alternative solutions to deal with a shortage of auto chip supply.

China’s market regulator last week fined three auto chip companies for pushing up prices, in an attempt to help auto production in the world’s largest auto market.

A prolonged global shortage of chips has affected major automakers including Ford Motor (FN), Honda Motor (7267.T) and Volkswagen (VOWG_p.DE), forcing many people to slow down or cut production.

Reporting by Shen Yan, Yilei Sun and Brenda Goh; Editing by Christopher Cushing and Stephen Coates

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