Taiwanese Suppliers Shift Away from Chinese EV Market

As the electric vehicle (EV) market in China undergoes significant changes, Taiwanese automotive part suppliers are reducing their deliveries to Chinese carmakers.

The shift is part of a broader market reshuffle that might eliminate about 80% of domestic brands. The suppliers are refocusing their efforts towards markets in Europe, the US, and other regions due to long-term strategic considerations.

Capital remains a major challenge for China’s EV manufacturers, necessitating heavy investments in research and development, production, and sales. Despite the challenges, some Chinese brands like BYD and Xiaomi continue to make inroads domestically and internationally.

Meanwhile, issues with payment delays and demands for low-priced components from Chinese carmakers are causing suppliers to reassess their customer base and risk exposure.

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