When EV startups shut down, will their cars still work?

When one of China’s once-popular electric vehicle startups went bust, car owners encountered an unexpected problem: Their vehicles went “offline.”

Richard Qian didn’t know what to expect when he heard that WM Motor, a Shanghai-based EV maker popular for its low prices, filed for bankruptcy in October 2023. He tried to drive his compact EX5 SUV as he normally would, but discovered that he could no longer log into WM Motor’s smartphone app, which remotely controlled the car lock and air conditioner. He also couldn’t see his car’s mileage and charging status on the dashboard.
↫ Tianyu Fang at rest of world

Chinese car makers are heavily pushing to gain a foothold here in Sweden, it seems, as ads for these brands are popping up all over the place, and dealerships – although most likely not dedicated dealerships – are present even here in the Arctic high north. I have no idea how successful they are, as I don’t think I’ve ever seen one out in the wild, but with such massive presence they must be doing something right. Considering most of the cars they sell are electric, I assume if any of them go under, buyers would suffer the same issues as Qian did.

Of course, EV startups aren’t exactly a China-only thing, but there are definitely more of them than there are non-Chinese ones, since even brands already well-established in China will effectively be startups again when entering the European or American markets. If an otherwise successful Chinese car maker doesn’t survive in Europe, the end result is the same as if it were a European EV startup: no dealer network, no spare parts, and most likely, no servers to run your EV app.

This issue alone keeps me from taking EV startups – Chinese or otherwise – seriously until they’ve got several solid product generations under their belt. The idea of spending tens of thousands of euros on a car that randomly loses a bunch of its functionality because its brand went under sounds like a nightmare to me, especially since so many features are now shoveled into electronic black boxes, down to even the door handles.

I’ll stick with established brands, for now.