Subsidy cuts could sound the death knell for China’s cheap electric carmakers as entry-level vehicles face huge price rises, says Xpeng chief

Drastic cuts to government subsidies that have propped up China’s electric carmakers could create an existential crisis for those at the budget end of the scale.Manufacturers who have been selling their vehicles for 60,000 yuan (US$8,715) or less will be forced to drastically raise their prices to cope with the withdrawal of financial support, according to Brian Gu, vice-chairman and president of Xpeng, a company seen by many as a challenger to Tesla.Being unable to absorb cuts of up to 60 per…

source https://www.scmp.com/business/china-business/article/3018061/subsidy-cuts-could-sound-death-knell-chinas-cheap-electric

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