US electric car maker Tesla (Nasdaq: TSLA) is setting some tough goals for itself during its first year in China, aiming to take advantage of government incentives and its high-end brand image to quickly take a big share of the market. I did a little math based on the company’s latest remarks, and its ambitious target for this year would represent around three-quarters of all electric vehicles sold in China in 2012. If it really can meet the new target, I suspect the company’s biggest strength will be its position as a luxury brand, since most people who buy EVs in China will probably do so more for the snob factor than due to any incentives from Beijing or desire to save the environment. Read Full Post…
A slew of year-end news about China’s auto industry is shining a spotlight on the tough times that domestic car makers are facing not only at home but also abroad as they grapple with tough competition and other market factors. Domestic nameplates like Geely (HKEx: 175), Chery and BYD (HKEx: 1211; Shenzhen: 002594) have steadily lost share in their home market over the last few years to big foreign names like GM (NYSE: GM) and Volkswagen (Frankfurt: VOWG), but posted strong export gains as they looked to overseas markets to partly offset the declines at home. But now even the export picture is looking bleak, with the latest word that no Chinese car makers will attend the industry-leading North American International Auto Show in Detroit this week. (English article) Read Full Post…
After a year of relative calm in which its shares have surged, electric vehicle (EV) aspirant BYD (HKEx: 1211; Shenzhen: 002594) is once embroiled in a couple of mini-scandals involving its labor practices and technology in California. While I doubt that either of these problems will have a long-term impact on the company, they do highlight the many speed bumps that BYD and other Chinese automakers will face as they move into the global marketplace. The risks are particularly high for BYD, which is 10 percent owned by billionaire investor Warren Buffett, since the company is relying heavily on global markets to fuel its EV business. Read Full Post…
A couple of interesting news bits are coming from the new energy vehicle sector, including a potential roadblock into the China market for up-and-coming US player Tesla (Nasdaq: TSLA) and new results from struggling domestic electric car maker BYD (HKEx: 1211; Shenzhen: 002594) that look encouraging but not too exciting. The main common theme in this latest news is that new energy vehicle makers continue to hold out hopes for the China market, banking on strong government policies to boost the market, even though progress has been slow so far. Read Full Post…
China’s auto industry is in desperate need of consolidation, and faded car maker Chery looks set to become one of the first victims despite its launch of a turnaround plan that looks like too little too late. Of course there’s always the possibility that local government stakeholders will come to the rescue of this colorful company, which is a big employer and economic engine in its home province of Anhui. But central leaders in Beijing seem increasingly determined to force consolidation in many of the nation’s overcrowded industries, and cars are one area where such downsizing is long overdue if China ever wants to produce some world-class auto makers. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 18-20. To view a full article or story, click on the link next to the headline.
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The following press releases and media reports about Chinese companies were carried on April 26. To view a full article or story, click on the link next to the headline.
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The auto industry is humming over new data that show China car sales soared 45 percent in January, marking their strongest growth since April 2010 when government incentives during the global economic crisis helped to turbocharge the sector. Industry watchers are acknowledging that seasonal factors played a major role in this latest jump, but point out that they still expect to see a return to strong growth in the upcoming Year of the Snake as China’s economy improves and consumers rediscover their love affair with cars.
The following press releases and media reports about Chinese companies were carried on January 16. To view a full article or story, click on the link next to the headline. ══════════════════════════════════════════════════════
Alibaba’s Jack Ma To Stand Down As CEO, Move To Chairman Role (English article)
Apple (Nasdaq: AAPL) Hopes To Set Up Beijing R&D Center (Chinese article)
Trina (NYSE: TSL) Obtains Rights to Develop 50 MW Solar Project in Gansu (PRNewswire)
Wi-Fi + Cellular Models of iPad Mini & 4th Generation iPad Available in China On Friday (Businesswire)
BYD (HKEx: 1211) Delivers 500 Electric e6 Police Cars to Shenzhen PSB (Businesswire)
If struggling car maker BYD (HKEx: 1211; Shenzhen: 002594) ultimately fails in its dream to become a leader in new energy vehicles, at least it will have lots of global assets to leave as a record of its efforts. Perhaps I’m sounding a bit too cynical in my latest musings on this company, since I really am starting to become more convinced that perhaps BYD’s electric dreams could actually someday become a reality, especially with its new announcement of plans to build an electric bus manufacturing plant in the US. (English article)
Struggling electric vehicle (EV) maker BYD (HKEx: 1211; Shenzhen: 002594) got a major boost last week when Beijing announced an innovative new plan to stimulate an anemic industry whose sales have failed to take off despite generous government support. The plan this time around looks much smarter than previous ones by focusing on big customers.
The auto industry is humming over new data that show China car sales soared 45 percent in January, marking their strongest growth since April 2010 when government incentives during the global economic crisis helped to turbocharge the sector. Industry watchers are acknowledging that seasonal factors played a major role in this latest jump, but point out that they still expect to see a return to strong growth in the upcoming Year of the Snake as China’s economy improves and consumers rediscover their love affair with cars.
If struggling car maker BYD (HKEx: 1211; Shenzhen: 002594) ultimately fails in its dream to become a leader in new energy vehicles, at least it will have lots of global assets to leave as a record of its efforts. Perhaps I’m sounding a bit too cynical in my latest musings on this company, since I really am starting to become more convinced that perhaps BYD’s electric dreams could actually someday become a reality, especially with its new announcement of plans to build an electric bus manufacturing plant in the US. (
