As the auto industry races toward the final stretch of 2024, with less than a month remaining before 2025, JiYue Auto—fresh off unveiling its sports car concept—has suddenly collapsed. This "dissolution on the spot" comes less than a month after Neta Auto faced its own crisis.

Employees losing social security and jobs, car owners left with vehicles reverting to mechanical-era functions—nobody foresaw December 2024 becoming this challenging.

As fear ripples through the market, the burning question is: who will be the next to follow in the footsteps of Neta Auto and JiYue Auto?

JiYue Auto's predicament could be attributed to the difficult decisions of its major shareholders, Baidu and Geely, or perhaps to the company's own inability to overcome its burdens. However, videos of employees confronting JiYue Auto CEO Xia Yiping for answers brought the harsh realities of the EV startup industry's bankruptcies into stark focus for the public.

Yet, the most unfortunate victims of JiYue Auto’s downfall are neither the car owners, the employees, nor the suppliers. These groups, at least, had Geely as a safety net, even if only for the most basic guarantees.

The bigger concern lies with 2025, a year rapidly approaching and marked by the absence of any clear safety net.What lies ahead for the Chinese auto market in 2025? A glimmer of hope, or a deeper descent into uncertainty?

When the EV Boom Fizzles, Traditional Automakers Shoulder the Burden

In the early days of the EV startup boom, reliance on traditional automakers for contract manufacturing was seen as a limitation—a "robbery" to subsidize legacy players.

However, as nearly all EV startups face collapse, it is once again traditional automakers and joint ventures that are left to uphold the Chinese auto market's sales and development.

From LeEco and Byton in the past to WM Motor and HiPhi more recently, every failed startup leaves behind a trail of abandoned factories and disrupted lives. Capital’s retreat leaves nothing but desolation, accompanied by echoes of once-grandiose proclamations.

Unlike JiYue Auto's disorderly collapse, the dissolution of the GAC-Mitsubishi joint venture stands out as a model for an orderly exit. Shareholders provided funds to resolve debts, maintained the joint venture for after-sales service and maintenance, and allowed employees to either join GAC Aion (which took over the factory) or leave with adequate severance packages. Everyone had a way forward.

Traditional automakers are backed by local governments, state-owned enterprises, and global corporations. Manufacturing remains central to their future, and they leave behind tangible assets like factories and office buildings.

In contrast, EV startups are predominantly backed by capital, where auto manufacturing is merely one of many investments. For them, a single press release can spell immediate closure and abandonment.

Survival Strategies in a Harsh Winter

Amid this market downturn, consolidation and efficiency have become survival necessities. SAIC Group merged Roewe and Rising Auto, GAC Group integrated the operations of Trumpchi and Aion, and Geely folded Lynk & Co into Zeekr.

Smaller EV startups must either secure government endorsements like NIO, attract investment from global giants like Xpeng (backed by Volkswagen), or, like Leapmotor, hand over their overseas operations to a strategic partner (Stellantis). Beyond these routes, no alternatives remain.

JiYue Auto's sudden collapse is curiously timed, coming shortly after Geely's announcement to integrate Lynk & Co into Zeekr to create a million-unit-scale automotive tech group.

JiYue Auto's mistakes—its 960 million dollars loss and chaotic internal management—are not unique among startups. What set it apart was making the wrong moves at the wrong time, with the wrong people.

While JiYue Auto's employees and car owners can count on Geely as a safety net, others may not be so fortunate in the approaching 2025. Consumers and employees of other brands must carefully consider whether anyone will bail them out when the time comes.

The Few Left Standing: A Fragile Future for EV Pioneers

The once-vibrant EV startup movement has dwindled to a select few—NIO, Xpeng, and Li Auto, collectively nicknamed "Wei Xiao Li" (WXL)—as the remaining flag bearers of China’s EV industry. But even they face the risk of becoming the next JiYue Auto.

Amid the apparent prosperity brought by advanced EV and smart car technologies, these startups still struggle to scale beyond 500,000 units annually. While the growing EV market offers hope, the honeymoon phase is ending. With mass deliveries of intelligent EVs, users are beginning to feel both the unparalleled advantages and the overhyped drawbacks.

Meanwhile, traditional automakers, armed with plug-in hybrids and smart features like large infotainment screens, are entering the EV race. The narrative of intelligent EVs as a utopian revolution is fading—cars are still just cars.

Jokes about EV startups being outpaced by traditional automakers are becoming reality. Backed by million-unit production scales and long-established brand influence, traditional players remain the mainstream choice. Their rapid electrification and digitalization efforts represent a historic transformation that positions them for continued dominance.

Looking Ahead: Who Will Bail Out the Next Collapse?

In the past, Chinese automakers leaned on the proven success templates of global giants like Volkswagen, Toyota, and Porsche. As long as a car could be built, it could succeed.

In the EV era, startups once climbed atop traditional players to make their grand entrance, positioning themselves as saviors of the global auto industry.

But now, as capital recedes, the "naked runners" have vanished. Those who remain face the tough road to profitability, while the safety net still rests with traditional automakers like BYD, Geely, and Chery.

In 2025, the next collapse may not see a knight in shining armor come to the rescue. No one may be willing—or able—to bail them out. For those who fail to survive, it truly could be a "Les Misérables" scenario.