Beijing plans to restructure state-owned EV players

Cici Cao

China's state asset regulator said it plans to restructure state-owned automakers, the latest efforts by Beijing to tackle intensifying competition in the country's electric vehicle sector.

Speaking at the China EV100 Forum in Beijing, Gou Ping, vice chairman of the State-owned Assets Supervision and Administration Commission, said a restructuring was needed to enhance the industry.

He encouraged collaborations between state and private automakers to boost core competitiveness.

China's state planner meanwhile pledged to rectify market disorder in the automobile industry, saying some automakers have improperly "seized the market shares at the expense of profits, even resorting to false advertising and malicious smearing."

The National Development and Reform Commission said this has dragged down profits in the industry and even hurt technology innovation and product quality.

XPeng (9868) founder and chief executive He Xiaopeng said the global flying car market could reach US$2 trillion (HK$15.6 trillion) in the next two decades.

In other auto news, Tesla is reportedly seeking to collaborate with Alibaba (9988) on its full self-driving service in China, according to mainland media.