EV Archives ~ Page 2 of 3 ~ Business China : news for investors in China

NEW ENERGY: Xiaomi, LeTV In Environmental Plays

By newsdoug on December 11, 2014

Bottom line: Xiaomi’s new smart air purifier looks like a good move to build up its ecosystem of interconnected smart devices, while LeTV’s new EV initiative is more likely a publicity ploy.

China’s entrepreneurial tech firms never miss a good business opportunity, and environmental plays are suddenly the flavor of the day with word of major new pollution-related plays by smartphone sensation Xiaomi and online video firm LeTV (Shenzhen: 300104). Xiaomi has announced it will enter the smart devices space with a new line of air purifiers aimed at consumers tired of breathing polluted Chinese air. Meantime, LeTV has announced its intent to get into the electric vehicle (EV) business, as China opens up that sector to encourage development of more clean technology. Read Full Post…

NEW ENERGY – Building Bureaucracy Bogs Down China EV Plan

By newsdoug on November 4, 2014

Bottom line: Bureaucracy at the homeowner level is providing a major obstacle to China’s ambitious new energy vehicle build-up plan, with new government directives unlikely to fix the problem.

A new report is showing just why new energy vehicles are failing to gain any traction among Chinese consumers, despite huge government efforts to promote the technology. The main culprit in this case is the country’s huge bureaucracy, which affects everything from the largest government programs all the way down to something as simple as installing a vehicle charger in an apartment building.

In most western cities, the installation of an electric vehicle (EV) charger at a person’s home would be a simple matter, involving a visit from a specialist to hook up the proper equipment. Apartments could be slightly more complex though still manageable, since they would involve modifications at collectively owned buildings. But in China, where most people live in apartments, the bureaucracy of installing chargers in such buildings rises to a whole new level, creating a major obstacle that’s unlikely to go away anytime soon. Read Full Post…

Tesla Charges China EVs With Unicom Tie-Up

By newsdoug on September 2, 2014

Despite disappointing progress in China’s plan to put hundreds of thousands of new energy vehicles on its roads by next year, American electric car maker Tesla (Nasdaq: TSLA) has made remarkable progress despite its late arrival to the market. The company has won its strong initial results though a smart combination of savvy marketing and initiatives to encourage building of necessary infrastructure to support its buyers.

The latest of those initiatives saw Tesla last week announce a partnership with Unicom (HKEx: 762; NYSE: CHU), China’s second largest mobile carrier, to install charging stations at hundreds of Unicom outlets nationwide. (English article) As a result of these and other efforts, Tesla has been the lone player so far to succeed in China’s broader consumer market, an area that will be critical to achieving Beijing’s goals. Read Full Post…

BYD EVs: An Uphill Road With Many Bumps

By newsdoug on July 16, 2014

BYD announces Brazil EV plant

Electric vehicle maker BYD (HKEx: 1211; Shenzhen: 002594) has been zipping in and out of the headlines this past week, including its latest announcement that it will open a manufacturing plant in Brazil to service the BRICS country and the broader Latin American market. The company’s EV business, a major factor that attracted billionaire investor Warren Buffett as a major backer, also got good news from Beijing this week with word of a major government drive to boost new energy vehicle buying.

Despite those positive moves, the company still has yet to received its first major overseas order, though it has certainly set up many pilot programs. Such programs make good headlines, even though they result in very limited actual business. And those programs receive far less attention when they end in failure, which is what recently happened to a high-profile trial in a city near Los Angeles. Read Full Post…

Cars: Chery, EVs Continue To Sputter

By newsdoug on July 3, 2014

A couple of headlines are spotlighting the ongoing woes of 2 groups in China’s auto sector, with domestic brands and new energy vehicle makers both showing signs of difficulty. In the former category, reports that former domestic high-flyer Chery is closing one of its biggest Beijing dealerships spotlight the broader woes of domestic car brands that are losing share to better-run foreign rivals. In the latter category, another media report is showing that new energy vehicle sales were largely insignificant in the first 4 months of the year, even though they did notch major gains over 2013. Read Full Post…

BMW Attacked, Fights Back With EV Launch

By newsdoug on June 3, 2014

German luxury automaker BMW (Frankfurt: BMW) is in 2 sets of China headlines today, coming under a media attack for its high prices as it separately announced it will bring its electric vehicles (EVs) to the market. If I were a conspiracy theorist, I might try to link these 2 pieces of news and say that BMW knew the media attack was coming, and made its EV announcement to try and deflect the negative publicity. But I really doubt these 2 pieces of news are related. Instead the new attack from leading broadcaster CCTV reflects one of the biggest and more unique dangers that major multinationals like BMW face in China. The EV announcement represents the kinds of counteroffensives such companies must launch to maintain a positive image. Read Full Post…

BYD Runs On Government Support

By newsdoug on April 25, 2014

I gave quite a bit of attention a few days ago to US electric vehicle (EV) sensation Tesla (Nasdaq: TSLA), so it’s only fair that I close out this week by writing about China’s homegrown EV superstar BYD (HKEx: 1211; Shenzhen: 002594), which has just released quarterly results that look quite disappointing. The only things that look slightly encouraging in this latest report are the fact that billionaire investor Warren Buffett continues to hold onto his 10 percent stake in the company, which he bought in 2008, and that BYD remains profitable. But even the profits are due to strong support from Beijing, under its program to encourage clean-energy vehicle development. Read Full Post…

Tesla CEO Makes Smooth Drive Into China

By newsdoug on April 23, 2014

I have to give my congratulations to new energy car maker Tesla (Nasdaq: TSLA) for creating the kind of buzz and excitement this week that only names like Apple (Nasdaq: AAPL) and smartphone sensation Xiaomi have typically been able to muster. In the last 2 days, the company and its charismatic founder Elon Musk were all over the Chinese headlines as Tesla delivered its first electric vehicles (EVs) in China on the sidelines of the nation’s biggest annual auto show happening this week in Beijing. Musk seems to have done interviews with nearly all of the major publications I regularly read, leading me to wonder if the man ever sleeps. Read Full Post…

Tesla Revs Up China Engine

By newsdoug on January 27, 2014

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…

BYD Under Fire On Labor, Tech Fronts In California

By newsdoug on November 1, 2013

BYD hits California speed bumps

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…

Two Generals Team Up in Latest EV Drive

By newsdoug on September 23, 2011

Latest EV moves look largely symbolic There’s been a flurry of news on the electric vehicle (EV) front these last 2 days, as China enlists US heavyweights General Motors (NYSE: GM) and General Electric (NYSE: GE) to try and jumpstart the country’s sputtering drive to environmentally friendly cars. But despite the hype, the two latest initiatives look largely symbolic to me, and it’s hard to tell if either will have much impact. One deal will see GM and Chinese partner SAIC (Shanghai: 600104) step up their EV development, with GM making vague promises to transfer more of its cutting-edge EV technology to China as it prepares to import its state-of-the-art Chevy Volt on a trial basis. (English article) The second deal will see the two Generals, GM and GE, install charging stations in Shanghai on a very limited basis at GM’s China headquarters and in the pilot district of Jiading. (English article) The pair of announcements follow a similar, more interesting one last month, in which GE teamed up with US rental car giant Hertz and Chinese EV maker BYD (HKEx: 1211) in a drive to make EVs available on a rental basis with GE supplying necessary charging infrastructure and BYD supplying cars. (previous post) I applaud China for its steadfast determination push ahead with its EV drive, which it is trying to do by offering buying incentives and by coaxing big names like GE, GM and Hertz to provide the necessary infrastructure. But it’s clear from the reserved nature of all these announcements that the biggest piece of the equation — consumer demand — is still missing. The rental car concept being rolled out by Hertz is good, as it will allow consumers to test out EVs and feel more comfortable with them before making a purchase. Beijing needs to make more moves like this, including a broader public education program, to build up the necessary consumer confidence that even the most aggressive infrastructure-building program can’t provide. Without such confidence, China’s EV drive could sputter and die before it even gets started.

Bottom line: China’s latest EV initiatives involving GE and GM look largely symbolic, and instead Beijing should focus on building the necessary consumer confidence to make its EV program work.