Here's a bit from the Financial Post that brings up some points I wasn't aware of.
There are some 846 registered automobile manufacturers in China, and more than 300 of them churn out new-energy cars, loosely defined as electric vehicles or plug-in hybrids. The vast majority are names unrecognizable elsewhere. In 2020 alone, the country added new production capacity of around 5 million units, about four times the actual number of EVs sold in China that year. According to regulators, almost half that capacity wasn’t in use.
This sounds a lot like where the West was in the 1920's. Hundreds of manufacturers, and not enough buyers to support them all. Also the matter of some of them being not high enough quality to survive anyway, and some being so high they priced themselves out of the market.