The “tiny car” companies are making “cars” that can be purchased for $1000 to $1500 in some cases.
This is a small fraction of the cost of regular, larger electric cars, and fit the budgets of many Chinese consumers. Granted, the top speed is 40 miles per hour or so, but for many Chinese such cars are a life changer. They have wheels.
The big, government subsidized electric car companies appear to be leaning on the government to regulate the industry away however, at least in places. It’s the classic regulate the competitor into oblivion before they get too big move. It happens all the time, all over the world.