In China's EV market, new players are riskily competing for riches amid overcapacity and a fierce price war.

A manufacturer of hair dryers and vacuum cleaners is among the many investors interested in entering China's US$376 billion electric vehicle (EV) industry. That confidence is fascinating in a sector with many setbacks and losses.

According to a local media source last month, Dreame, whose goods compete with international names like Dyson and Philips, has hired a team to develop and introduce a hybrid EV model after 2026. According to the article, the company, based in Suzhou in the eastern Jiangsu province, also wants to export to Europe.

Following the release of its Rox 01 sport-utility vehicle (SUV) last year, Rox Motor is also planning for the future. The automaker has agreements in place to distribute and sell the Rox 01 hybrid SUV—its only electric vehicle to date—in Kazakhstan, Qatar, Kuwait, Azerbaijan, the Philippines, and Egypt.

In terms of industry-wide revenue, China's domestic EV market, which is the largest in the world, is expected to remain stagnant for the next two years. While industry heavyweights like BYD, Geely Auto, Xpeng, and Li Auto have shipped over 10 million EVs to customers this year, over a dozen of the 100-plus companies that have been involved in the industry since the first of 25 million EVs hit the road in 1993 have crashed and burned.

Wuling Motors chairman Yuan Zhijun stated that the industry would inevitably follow this trend and that they must support a new growth engine. The company has a three-way partnership with General Motors and SAIC Motor to produce the Hongguang, a two-seater compact EV. We've decided to switch to electric vehicles.