The Pandemic Will Permanently Change the Auto Industry

Sales of electric cars have been surprisingly resilient even as lockdowns gutted sales of gasoline and diesel powered vehicles.

Turmoil in the market could be good for electric car start- ups like Byton and Lucid, which have proliferated after Tesla showed it was possible to challenge the traditional carmakers. The start-ups have a chance to attack the market while the established companies are struggling.

Chinese electronics giant Xiaomi Corp. became the latest tech company drawn to China’s burgeoning electric vehicle market, pledging $10 billion over the next decade to the initiative.

Xiaomi will spend an initial 10 billion yuan, equivalent to about $1.5 billion, to launch the business, expanding its investment in the coming years.

China is the world’s largest electric vehicle market, where sales have been booming since industry champion Tesla Inc. began building its high-end cars in Shanghai in late 2019. Domestic rivals include NIO Inc.—whose soaring stock has made it one of the world’s most valuable auto makers—as well as Li Auto Inc. and Xpeng Inc.

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