Aug 30, 2024 20:00:00

It is pointed out that owners are losing access to smartphone app updates and features that rely on cloud services due to the bankruptcy of a series of Chinese EV manufacturers

In China,

more than 100 electric car manufacturers are competing for survival, including BYD , which has overtaken Tesla to become the manufacturer with the most electric cars sold in the world. On the other hand, some manufacturers who have lost out in price wars have chosen to go bankrupt, and as a result, it has been pointed out that functions that can be operated by smartphone apps, such as vehicle locks and air conditioning, can no longer be used.

EV owners face software blackouts as startups go under in China - Rest of World
https://restofworld.org/2024/ev-company-shutdowns-china/

More than 100 electric vehicle manufacturers are vying for power in China, where fierce price competition and government subsidies are being phased out, but since 2020, more than 20 manufacturers, including

Singulato and Aiways , have announced their withdrawal from the market. In February 2022, high-end electric vehicle manufacturer HiPhi halted production after struggling with financial difficulties.

According to the China Automobile Dealers Association, an estimated 160,000 drivers have been left in dire straits due to a series of bankruptcy filings and suspensions by electric vehicle manufacturers. In fact, Shanghai-based electric vehicle manufacturer WM Motor, which filed for bankruptcy in October 2023, offered a smartphone app for remotely controlling car locks and air conditioning, and also displayed mileage and charging status on the car's dashboard. However, after WM Motor filed for bankruptcy, these functions, including the app, were no longer available, and some users have reported that built-in car stereos, which require an internet connection, no longer work.

'The entire car system is paralyzed, I can't use the entertainment system, check the status of my car or even log into the app. This is a huge safety issue,' one owner said .

WM Motor later

apologized and reported that the issue had been resolved, but some drivers have complained that they have difficulty accessing basic functions such as in-car entertainment , and that the WM Motor app itself is not available in China's app stores.

'As competition in China's EV market intensifies, the fact that many electric vehicles rely on cloud services for smartphone control and even software updates is raising concerns about the long-term maintainability of the vehicles,' foreign media outlet Rest of World said.

According to a source, the incident surrounding WM Motor is a special case that only WM Motor, which has its own factories and research and development organizations and has built its own business from scratch, could handle. 'Many other electric vehicle manufacturers are subsidiaries or have partnership agreements with existing automakers or technology companies, so even if their electric vehicle businesses go bankrupt, they can transfer the after-sales service to another company,' the source said.

'WM Motor's best option would be to hand over its after-sales services, including digital services, to other companies, which could encourage more people to buy electric cars again,' he said.WM Motor did not respond to Rest of World's request for comment.