The robust growth of China's new-energy vehicles' (NEV) retail sales in the domestic market stalled in January this year, with sales falling 20 percent year-on-year following a scaled-back government stimulus package. Amid the downturn, a number of domestic NEV manufacturers such as Weltmeister, Hiphi and Enovate are at high risk of exiting the market. However, in this contracting market, major established automakers including Audi, Volkswagen, Xiaomi and GAC will probably shift their focus to extended-range electric vehicles which have alleviated range anxiety, particularly for those in the colder north. With widespread adoption and safety concerns, intelligent driving will no longer serve as a key selling point for NEV manufacturers as it once did. Domestic automakers, such as BYD, Chery and Geely, will likely set up factories in European or Southeast Asian countries to expand their markets.
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