Auto makers churning out more EVs than Chinese consumers can buy

Electric vehicles aren’t yet living up to the hype, auto makers in China are finding, as they churn out more EVs than they can sell to satisfy government directives. Beijing tempts buyers with subsidies and the construction of a vast charging network—and pushes consumers to buy electric cars in crowded cities. The policies have made China a driving force in world-wide development of EVs, and left foreign auto makers scrambling to keep up. Yet at the Guangzhou Auto Show, companies are reckoning with the challenge of attracting buyers—and generating profits—while meeting Beijing’s requirement that electric vehicles account for roughly 3% to 4% of their total output in 2019. EV supply already exceeds demand: Auto makers made 424,000 in the first nine months of the year, but sold only 398,000, according to the China Association of Automobile Manufacturers. Analysts estimate most are bought by state-run taxi companies or other public-service fleets, The Wall Street Journal reports.