A video from a YouTuber alleging excessive production of eletric cars in China to obtain government subsidies caused an uproar.
Shanghai-based car expert Mark Rainford has hit back after a visit to China’s mysterious electric vehicle graveyard.
Electric car graveyard in China goes viral
The initial accusations were based on drone footage of a field near Hangzhou, in Zhejiang province, released by YouTuber Winston Sterzel.
He stated that more than 10,000 Neta V models were deteriorating at the site. However, Rainford’s investigation revealed a different reality, with just 146 Neta V cars in the field, along with other models.
The cars, far from being new, sported aftermarket seat covers, floor mats and signs of disrepair.
The situation raises questions about the disposal and abandonment of electric vehicles in China, especially those linked to ride-sharing services.
The expert highlights that the EV called BAIC BJEV EC3, a small electric hatchback, dominates the cemetery.
Primarily used for ride-sharing, it reveals the ramifications of failed car rental businesses, which have resulted in hundreds of abandoned electric vehicles.
The decline of electric car sales in China
China, known for leading the revolution of eletric cars, is now facing a slowdown in sales. In 2022, sales of these vehicles fell for the first time in two years.
Several factors contribute to this situation, including a lower acceptance of electric cars, an increase in average prices and a reduction in government incentives.
The problems go beyond the drop in sales. Quality problems in Chinese electric vehicles, such as inferior workmanship and batteries that quickly lose capacity, are cited as reasons for the rapid abandonment of these cars.
Contrary to manufacturers’ warranties, consumers often choose to exchange for new models instead of undergoing repairs.
The low appreciation in the used market makes the situation worse. At Chinaused electric cars have significantly lower resale prices, increasing owners’ financial losses.
Is a cemetery a warning sign for manipulation of numbers?
Electric car cemetery in China may be used to inflate production – Image: Folha de Pernambuco/Reproduction
Images of China’s electric car graveyard have sparked speculation about possible manipulation of sales figures.
The idea is that manufacturers, aiming for government subsidies, overproduce, artificially inflating statistics.
The Pand-Auto case, a kind of Uber Chinese company controlled by Lifan, illustrates the crisis faced by ride-sharing companies.
Pand-Auto’s failure led to bankruptcy, leaving a fleet of electric vehicles abandoned. The same fate faced Lifan Motors, parent company of Pand-Auto, worsening the situation.
The partnership between Pand-Auto and Lifan included an autonomous transport project in Xunquim, which ended in failure, leading to the closure of the program and contributing to the financial crisis.
The gigantic Lifan 330 EV 01 cemetery reflects the challenges faced by companies that have invested in complex, asset-heavy business models.
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