NEV-related business registrations in China up 70.8% in 2020

February 19, 2021 ideaTechX

There were 78,600 newly registered new energy-related companies in China throughout 2020, up 70.8% year-on-year, according to data provider Qichacha.

In the fourth quarter, 27,000 new energy-related companies were registered, the data showed.

Since the second half of last year, production and sales in China’s new energy vehicle market have exceeded expectations. According to CCTV, orders for new energy vehicles in China’s first-tier cities during the 2021 Chinese New Year increased 10 to 20 times year-on-year.

This increase may be largely due to the fact that Covid-19 caused new energy vehicle sales to fall to a freezing point at this time last year.

There are currently 232,000 new energy vehicle-related companies in China, with Guangdong Province ranking first with 26,000, Shandong Province ranking second with 22,000, and Jiangsu Province ranking third with 20,000.

Zhejiang, Hunan, Henan, Sichuan, and Shanghai all have a volume of more than 10,000 companies.

Among these companies, those with registered capital of RMB 5 million ($770,800) or more are the most numerous, with 121,000 companies, accounting for 45%.

There are 59,000 companies with registered capital within RMB 1 million, accounting for 23% of the total.

There are 86,000 companies with registered capital between RMB 1-5 million, accounting for 32% of the total.

Analyst says China’s new energy vehicle industry is like real estate on the eve of the 2000s price explosion