KATHMANDU: China’s electric vehicle (EV) market has grown rapidly over the past decade, with hundreds of brands launching new models. However, few of them have survived the ride.
In 2018, China boasted more than 500 EV startups. Today, only about 100 of them are active. Experts say that fewer than 50 will survive by 2030.
In the early years, the Chinese government fueled the EV boom with generous subsidies, tax breaks and easy licensing. However, these incentives are gradually being phased out, which has exposed weaker companies to intense competition and financial strain. Many startups entered the market as it was easier to get licenses and funding. Since many of these startups lacked good technology, scalable manufacturing capabilities or clear business models, they struggled to keep pace as the landscape evolved at a very fast pace. This became difficult, especially after 2020, when government subsidies were gradually cut and larger players like BYD and Tesla started a price war, which further squeezed smaller brands.
Brands that failed to keep up
One of the most notable recent failures is Neta, once hailed as a rising star in China’s EV sector. The company had expanded to Southeast Asia and secured a $215 million credit line from Thailand. But in 2025, Neta announced mass layoffs and reportedly shuttered its research and development division.
Other brands are also facing serious issues. Ji Yue, backed by Chinese Internet giant Baidu and automotive major Geely, has closed showrooms and left employees unpaid. Yuanhang, a luxury EV brand under Dayun Auto, failed to attract buyers. These examples, coupled with earlier failures of companies like HiPhi, WM Motor and Byton, show just how difficult the Chinese EV market has become.
International expansion is also becoming difficult for Chinese companies. The European Union has imposed import tariffs of up to 45% on Chinese EVs, while high tariffs have made it impossible for Chinese EVs to enter the US market. As high tariffs erode competitiveness, Chinese companies are now forced to rethink their strategies.
Despite the setbacks, China is still leading the global EV market. It is a global leader in battery technology, with companies like BYD and CATL producing batteries that can charge in just 8–10 minutes. Big brands like Zeekr, Xpeng, and Nio are continuing to innovate, offering high-tech features like autonomous driving, advanced connectivity and attractive designs.
What does it mean for Nepal
These developments are more than just news headlines for Nepal. Chinese brands have been the dominant in Nepal’s fast-expanding EV landscape. Neta, in particular, has become quite popular among Nepali consumers.
News of Neta’s troubles has sparked concerns among Nepali buyers. Will spare parts be available? What if the brand exits altogether? Who will provide service and repairs? These are the questions being raised by Neta owners. These are serious questions because the reconditioned EV market is still not developed in Nepal. EVs are different from conventional vehicles as they rely heavily on software and advanced components that are harder to source or fix.
The uncertainty surrounding struggling brands can make potential buyers hesitant. As demand for clean and eco-friendly transportation is rising, so is the need for long-term reliability and support.
