The bruising price war in China’s auto industry has seen dozens of smaller carmakers quit the sector, leaving their customers with a problem: What do you do when your high-tech electric vehicle becomes obsolete?
Shanghai resident Mu, who asked to be identified by his last name due to privacy concerns, purchased his WM Motor EX5 EV in 2022. But since the company’s collapse in 2023, connectivity features have gradually vanished. Bluetooth keys no longer unlock doors, in-car entertainment systems are silent, maps don’t update and video streaming is unreliable.
While it’s still cheaper to run than his previous car — a gasoline-powered Buick — the loss of intelligent features, difficulties in taking out insurance and uncertainty around being able to replace components in the future have vastly diminished his driving experience.
“It’s incredibly boring now sitting in the car. No music, no video, no news, and even maps sometimes turns dark,” said Mu. “The car itself is fine as it’s quiet and efficient. But now it’s just a basic mode of transport.”
Years of generous subsidies sparked frenetic growth in China’s EV market as hundreds of startups, and their sophisticated tech-forward models, flooded the market. But as the government started to rein in excess, competition for customers intensified and rounds of aggressive price discounting has given more power to industry giants like BYD Co. and left smaller players scrambling to survive.
Jiyue Auto shows how quickly things can change. A little over a year after launching its first car, the carmaker jointly backed by Zhejiang Geely Holding Group Co. and Internet giant Baidu Inc. is scaling down production and seeking fresh funds amid reports it’s struggling to make payments. Some owners are now part-time ride-hailing drivers, hoping to maximize use of their vehicles and earn extra money to make up for the looming loss of their high-tech features.
Even more established carmakers aren’t immune. Bob Huang, a Nanjing-based owner of a Hozon Neta S, recently encountered difficulties getting his electronic display repaired. With two company-run shops closed and local dealers overwhelmed with customers and facing component shortages, he was left without adequate support.
“Even though the company is still operating, software updates are slowing,” Huang said, adding that he thinks the latest version of the car’s assisted driving system is worse than the previous iteration. “I doubt they have the bandwidth to even fix the bugs.”
Hozon said it’s recently experienced difficulties in providing repairs for some users, but is taking measures to improve the situation and expects current issues will be resolved by April. The carmaker has cut production and jobs after experiencing a sharp sales decrease in 2024, according to Chinese media reports.
With dealerships and after-sales service shuttered, some owners are now looking to unauthorized repair shops for help. Others are turning to online platforms like Xianyu, the used goods marketplace controlled by Alibaba Group Holding Ltd. that’s the largest in China, to trade parts.
Desperate times have also seen a burgeoning network of EV technicians emerge, offering to hack into car systems and install pirated software to restore some functionality.
“We can’t treat cars like smartphones. You’ll still expect to drive a car for five years or so,” said Yang Jifeng, chief technology officer at automotive technology provider Caresoft and former vice president of AI and digitalization at Great Wall Motor. “Maintaining basic functions like Bluetooth key access and ensuring core in-car systems operate smoothly shouldn’t be hard, and should be the bottom line.”
