China: Car Sales Speculation and News
11-21-2006, 01:09 AM
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China: Car Sales Speculation and News
There's no telling how fast China car sales will grow, GM says. - - Source: The Car Connection
After watching sales inChina increase 37 percent this year, GM expects more double-digit growth in 2007 as the Chinese market continues its rapid expansion.
GM sales in the People's Republic of China, including those made by Shanghai GM, SAIC-GM-Wuling and a small but growing number of imported vehicles, are expected to reach around 950,000 units, according to Michael Bernhard, the chief financial officer for the GM China Group.
However, Bernhard and other GM China hands also noted that forecasts have been wide of the mark over the past several years and have underestimated the pace of growth in the Chinese car market.
"Our forecasts were woefully inadequate," said Julian Blissett, deputy executive director of manufacturing at Shanghai GM.
All anyone knows at this point is that it will continue to grow and grow rapidly, GM executives said last week during a series of briefings on the eve of the Beijing Motor Show. "Next year's expansion should leave GM just shy of selling more than one million vehicles in the Chinese market," added Bernhard. However, selling one million units next year is probably too much of a stretch, he said.
Kevin Wale, the president and managing director of Shanghai GM, also said GM isn't about to rest on its laurels and is adjusting its product portfolio and expanding its technical capabilities to meet the demands of the growing Chinese market, where sales could top eight million units next year.
"What we're trying to do is grow faster than the market," Wale added.
GM is introducing several new vehicles, such as the Cadillac SLS and Chinese version of the Buick LaCrosse, both of which were specifically tailored by GM engineers and designers for Chinese tastes. GM's product portfolio in China now includes 32 different models, which range in price from the $4000 compact van made by Wuling, one of GM's key Chinese partners, to the $120,000 Cadillac XLR imported from Bowling Green, Ky.
Nick Reilly, GM group executive for Asia Pacific, said one of GM's strengths is its multi-brand strategy, which has positioned Cadillac at the top end to face off against other premium luxury brands such as BMW and Mercedes-Benz. Buick, which has made enormous inroads into China since it was first introduced in 1999, will sit in the broad middle range, while Chevrolet will cover the lower end of the market. Saab and Opel also have roles in GM's brand strategy. Wuling, which is a respected brand in China, also gives GM excellent support at the low end of the market. The multi-brand strategy is the key to GM effort to hold off the charge by Asian brands such as Toyota, Honda, and Hyundai, which also have expanded rapidly.
GM's operations in China are profitable, but GM's financial problems back home in North America have meant that the company's operations have had to self-finance capital spending, which is running at about $1 billion annually, Reilly said.
"We can't look to North America or Europe . We have to self-finance," he said.
GM also is learning some lessons about capital efficiency from its Korean subsidiary Daewoo, lessons also being employed in GM's China operations, Reilly added.
Reilly also said that going forward GM also will have to concentrate in developing small vehicles. "If we're going to compete in China, we're going to have to compete at the low end," he said.
Wale, however, stressed that was great opportunity in China. The demand for private vehicles in increasing rapidly and the Chinese are developing an emotional attachment to their vehicles, he noted.
Blisset added that China is forecasted to be the world's top growth market over the next several years. Of the top 20 emerging markets, China is expected to grow at faster clip than the next 19 markets combined, he noted.
"People are making margins here. We'd kill for half our margins (in China ) anywhere else in the world," he added.
GM sales in the People's Republic of China, including those made by Shanghai GM, SAIC-GM-Wuling and a small but growing number of imported vehicles, are expected to reach around 950,000 units, according to Michael Bernhard, the chief financial officer for the GM China Group.
However, Bernhard and other GM China hands also noted that forecasts have been wide of the mark over the past several years and have underestimated the pace of growth in the Chinese car market.
"Our forecasts were woefully inadequate," said Julian Blissett, deputy executive director of manufacturing at Shanghai GM.
All anyone knows at this point is that it will continue to grow and grow rapidly, GM executives said last week during a series of briefings on the eve of the Beijing Motor Show. "Next year's expansion should leave GM just shy of selling more than one million vehicles in the Chinese market," added Bernhard. However, selling one million units next year is probably too much of a stretch, he said.
Kevin Wale, the president and managing director of Shanghai GM, also said GM isn't about to rest on its laurels and is adjusting its product portfolio and expanding its technical capabilities to meet the demands of the growing Chinese market, where sales could top eight million units next year.
"What we're trying to do is grow faster than the market," Wale added.
GM is introducing several new vehicles, such as the Cadillac SLS and Chinese version of the Buick LaCrosse, both of which were specifically tailored by GM engineers and designers for Chinese tastes. GM's product portfolio in China now includes 32 different models, which range in price from the $4000 compact van made by Wuling, one of GM's key Chinese partners, to the $120,000 Cadillac XLR imported from Bowling Green, Ky.
Nick Reilly, GM group executive for Asia Pacific, said one of GM's strengths is its multi-brand strategy, which has positioned Cadillac at the top end to face off against other premium luxury brands such as BMW and Mercedes-Benz. Buick, which has made enormous inroads into China since it was first introduced in 1999, will sit in the broad middle range, while Chevrolet will cover the lower end of the market. Saab and Opel also have roles in GM's brand strategy. Wuling, which is a respected brand in China, also gives GM excellent support at the low end of the market. The multi-brand strategy is the key to GM effort to hold off the charge by Asian brands such as Toyota, Honda, and Hyundai, which also have expanded rapidly.
GM's operations in China are profitable, but GM's financial problems back home in North America have meant that the company's operations have had to self-finance capital spending, which is running at about $1 billion annually, Reilly said.
"We can't look to North America or Europe . We have to self-finance," he said.
GM also is learning some lessons about capital efficiency from its Korean subsidiary Daewoo, lessons also being employed in GM's China operations, Reilly added.
Reilly also said that going forward GM also will have to concentrate in developing small vehicles. "If we're going to compete in China, we're going to have to compete at the low end," he said.
Wale, however, stressed that was great opportunity in China. The demand for private vehicles in increasing rapidly and the Chinese are developing an emotional attachment to their vehicles, he noted.
Blisset added that China is forecasted to be the world's top growth market over the next several years. Of the top 20 emerging markets, China is expected to grow at faster clip than the next 19 markets combined, he noted.
"People are making margins here. We'd kill for half our margins (in China ) anywhere else in the world," he added.
11-21-2006, 01:10 AM
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GM PlansChina Hybrids in 2007 - - Source: The Car Connection
General Motors Corp. is planning to introduce hybrid vehicles in China in 2007. Kevin Wale, president and managing director, said during a breakfast meeting with reporters prior to the opening of the Beijing Motor Show that hybrids will play an important role in GM's future growth in China .
"The idea you can play yesterday's game and hope to win is long gone. You have got to be forward looking," he said. Wale, however, declined to specify which hybrid vehicle GM was prepared to bring to China but he indicated that it probably wouldn't be the Saturn Vue Green Line. GM has no plans to sell Saturns in China and SUVs generally have not penetrated the Chinese market.
Meanwhile, the Chinese government wants the country to be self-sufficient in energy and is encouraging carmakers to introduce hybrid technology. Consequently, GM has agreed to share hybrid technology with Shanghai Automotive, which is GM's principal partner in China, Wale said. GM also is committed to sharing its fuel-cell technology, another area in which SAIC and the Chinese government have taken an interest as the technology matures, Wale said. -Joseph Szczesny.
"The idea you can play yesterday's game and hope to win is long gone. You have got to be forward looking," he said. Wale, however, declined to specify which hybrid vehicle GM was prepared to bring to China but he indicated that it probably wouldn't be the Saturn Vue Green Line. GM has no plans to sell Saturns in China and SUVs generally have not penetrated the Chinese market.
Meanwhile, the Chinese government wants the country to be self-sufficient in energy and is encouraging carmakers to introduce hybrid technology. Consequently, GM has agreed to share hybrid technology with Shanghai Automotive, which is GM's principal partner in China, Wale said. GM also is committed to sharing its fuel-cell technology, another area in which SAIC and the Chinese government have taken an interest as the technology matures, Wale said. -Joseph Szczesny.
11-25-2006, 12:53 AM
#4
Beijing Wrap: China Shows Its Take on Performance
http://www.edmunds.com/insideline/do...ticleId=117635
http://www.edmunds.com/insideline/do...ticleId=117635
11-25-2006, 09:21 AM
#5
Senior Moderator
Originally Posted by shrykhar
Scary. There goes all our gas ... 
Edit: I wonder if they're going to make the hybrid batteries there ... given their track record for environmental protection ... heh heh heh ...
Edit: I wonder if they're going to make the hybrid batteries there ... given their track record for environmental protection ... heh heh heh ...
(And I have a lot of shares in oil stocks ... I need it to grow so I can retire by 50!)And the environmental protection in China is probably about 50 years behind America's. America had a right to pollute then to make the economy it is today like China can pollute to bring their economy up to 'modern' standards. Too much brainwashing by the western media.
Yes ... I'll agree that China has a lot to learn about environmental protection just like Canada better step up and back the Kyoto Accord.
11-25-2006, 11:16 AM
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china cars are crap, seriously. i live in beijing right now and the cars that they build here are pretty worthless. they are small, unsafe, and unreliable). Though their sales might grow, these cars are nothing in comparison to the major car companies
11-25-2006, 12:46 PM
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Originally Posted by negitek
china cars are crap, seriously. i live in beijing right now and the cars that they build here are pretty worthless. they are small, unsafe, and unreliable). Though their sales might grow, these cars are nothing in comparison to the major car companies
Originally Posted by shrykhar
Scary. There goes all our gas ...
Trending Topics
11-25-2006, 01:12 PM
#8
Originally Posted by derrick
^ What kind of self-serving comment is that? Oil is a world commodity ... there is no 'god given' right that the US siphon off more than it can afford. Please ... (And I have a lot of shares in oil stocks ... I need it to grow so I can retire by 50!)
(And I have a lot of shares in oil stocks ... I need it to grow so I can retire by 50!)
Originally Posted by derrick
And the environmental protection in China is probably about 50 years behind America's. America had a right to pollute then to make the economy it is today like China can pollute to bring their economy up to 'modern' standards. Too much brainwashing by the western media.
I'm not saying what the US or any other developing nation did was justified, but it has its reasons for defending what it has now. If we just let everyone pollute just because we did, we'd better start looking for another planet to live on.
11-29-2006, 03:25 PM
#9
Auto industry in danger: Hargrove
http://www.thestar.com/NASApp/cs/Con...d=968350072197
Auto industry in danger: Hargrove
CAW chief sees a big threat coming from the Far East that could send North America's auto sector into a tailspin
Nov. 29, 2006. 06:54 AM
TONY VAN ALPHEN
BUSINESS REPORTER
Auto union leader Buzz Hargrove says a tour of the Far East has convinced him that China will completely overrun the North American vehicle industry within two decades unless governments take action to thwart a potential flood of imports.
Hargrove, president of the Canadian Auto Workers union, said in an interview from Beijing yesterday that Ottawa and Washington need to move quickly with reciprocal trade measures because it is clear China won't allow imports to undermine the country's industrial growth.
"What we have seen so far has reinforced our concerns and arguments that we need managed trade," he said. "This (China) is a machine. Look out. If we don't stop it now, our industry will erode and we just won't have one in 15 to 20 years."
Hargove and two senior CAW officials have been quietly conducting a two-week fact-finding mission in China and Korea in an effort to understand the implications of economic growth there on the union's members and future prospects for the auto industry here.
The CAW, which represents workers at the struggling North American-based auto makers, have pushed for tariff barriers on Far East countries during the last two years because the union believes they don't allow similar access to vehicles built here.
"You can't let corporations and markets decide this," Hargrove warned.
"If they're allowed to ship here and we can't get in there, we are in serious danger."
The auto sector, Canada's biggest manufacturing industry, is concentrated in southern Ontario with 11 assembly plants and hundreds of parts makers. They employ about 150,000 workers directly and produced more than $100 billion in vehicle and parts shipments last year.
Hargrove said a number of Chinese auto makers could crank up production and become players in North America within the next five years.
--------------------------------------------------------------------------------
`(China) is a machine. ...
If we don't stop
it now, our industry will erode and we just won't have one in 15 to 20 years.'
Buzz Hargrove, president of the
Canadian Auto Workers
--------------------------------------------------------------------------------
"It's not today, but tomorrow is not far away," he said.
The union group received an extensive briefing from officials at the Canadian embassy in Beijing and then toured Chrysler and Magna plants in China. It also visited Hyundai's giant operations in Korea.
Regarding Korea, Canada is currently negotiating a free-trade agreement with its government.
The CAW says its analysis of the talks shows the Canadian auto industry would lose 4,000 jobs directly. But federal officials say a deal will have little impact on the auto sector here.
Hargrove said there is a huge migration of people in poor rural areas of China to industrial cities in search of work and a steady income.
"They want a better life and the ability to feed and clothe their children," he said. "And there is no way the Chinese are going to allow imports into their market if it will affect the building of their economy."
Hargrove said it would be impossible for North American auto plants to match the low production costs of Far East competitors. For example, Hargrove said the Chrysler plant uses workers to weld cars but it is still cheaper than the extensive automated welding functions in North America. That's because workers at the Chrysler plant earn only about $325 a month, he said.
Hargrove, who drives a Chrysler 300 sedan, said he inspected the same model in the Chinese plant and found its quality was excellent. "There was very little difference," he said. "They are right up there in quality."
The workers belong to an association whose leaders are part of China's government. Although the leaders don't negotiate contracts, they work to improve wages and safety through continuing changes in laws.
Hargrove said he passed out some CAW membership cards to Chinese workers but joked that the union had little hope of gaining recognition or bargaining rights there.
http://www.thestar.com/NASApp/cs/Con...d=968350072197
Auto industry in danger: Hargrove
CAW chief sees a big threat coming from the Far East that could send North America's auto sector into a tailspin
Nov. 29, 2006. 06:54 AM
TONY VAN ALPHEN
BUSINESS REPORTER
Auto union leader Buzz Hargrove says a tour of the Far East has convinced him that China will completely overrun the North American vehicle industry within two decades unless governments take action to thwart a potential flood of imports.
Hargrove, president of the Canadian Auto Workers union, said in an interview from Beijing yesterday that Ottawa and Washington need to move quickly with reciprocal trade measures because it is clear China won't allow imports to undermine the country's industrial growth.
"What we have seen so far has reinforced our concerns and arguments that we need managed trade," he said. "This (China) is a machine. Look out. If we don't stop it now, our industry will erode and we just won't have one in 15 to 20 years."
Hargove and two senior CAW officials have been quietly conducting a two-week fact-finding mission in China and Korea in an effort to understand the implications of economic growth there on the union's members and future prospects for the auto industry here.
The CAW, which represents workers at the struggling North American-based auto makers, have pushed for tariff barriers on Far East countries during the last two years because the union believes they don't allow similar access to vehicles built here.
"You can't let corporations and markets decide this," Hargrove warned.
"If they're allowed to ship here and we can't get in there, we are in serious danger."
The auto sector, Canada's biggest manufacturing industry, is concentrated in southern Ontario with 11 assembly plants and hundreds of parts makers. They employ about 150,000 workers directly and produced more than $100 billion in vehicle and parts shipments last year.
Hargrove said a number of Chinese auto makers could crank up production and become players in North America within the next five years.
--------------------------------------------------------------------------------
`(China) is a machine. ...
If we don't stop
it now, our industry will erode and we just won't have one in 15 to 20 years.'
Buzz Hargrove, president of the
Canadian Auto Workers
--------------------------------------------------------------------------------
"It's not today, but tomorrow is not far away," he said.
The union group received an extensive briefing from officials at the Canadian embassy in Beijing and then toured Chrysler and Magna plants in China. It also visited Hyundai's giant operations in Korea.
Regarding Korea, Canada is currently negotiating a free-trade agreement with its government.
The CAW says its analysis of the talks shows the Canadian auto industry would lose 4,000 jobs directly. But federal officials say a deal will have little impact on the auto sector here.
Hargrove said there is a huge migration of people in poor rural areas of China to industrial cities in search of work and a steady income.
"They want a better life and the ability to feed and clothe their children," he said. "And there is no way the Chinese are going to allow imports into their market if it will affect the building of their economy."
Hargrove said it would be impossible for North American auto plants to match the low production costs of Far East competitors. For example, Hargrove said the Chrysler plant uses workers to weld cars but it is still cheaper than the extensive automated welding functions in North America. That's because workers at the Chrysler plant earn only about $325 a month, he said.
Hargrove, who drives a Chrysler 300 sedan, said he inspected the same model in the Chinese plant and found its quality was excellent. "There was very little difference," he said. "They are right up there in quality."
The workers belong to an association whose leaders are part of China's government. Although the leaders don't negotiate contracts, they work to improve wages and safety through continuing changes in laws.
Hargrove said he passed out some CAW membership cards to Chinese workers but joked that the union had little hope of gaining recognition or bargaining rights there.
12-02-2006, 12:51 AM
#10
So I was looking around, and I ran into this interesting site. Yup, it's a forum dedicated to Chinese car manufacturers.
What struck me was the sheer number of manufacturers, and the number of countries they already export to. Hell, they've even got sites for spy shots! And fanboys! I can easily see a flood of these things dominating the market, not that I really want that to happen. They just seem so cheap and soulless; I want to lock Clarkson in China for a few weeks, and see what he has to say through his straitjacket afterwards.
Anyway, there's the usual assortment of cars that you'd expect:
The rip-offs.
The econoboxes.
The just plain weird.
And here's 2 gems that had me ROFL:
Something's missing here ...
That's the cheapest suspension setup I've ever seen ...
What struck me was the sheer number of manufacturers, and the number of countries they already export to. Hell, they've even got sites for spy shots! And fanboys! I can easily see a flood of these things dominating the market, not that I really want that to happen. They just seem so cheap and soulless; I want to lock Clarkson in China for a few weeks, and see what he has to say through his straitjacket afterwards.
Anyway, there's the usual assortment of cars that you'd expect:
The rip-offs.
The econoboxes.
The just plain weird.
And here's 2 gems that had me ROFL:
Something's missing here ...
That's the cheapest suspension setup I've ever seen ...
04-15-2010, 06:41 PM
#11
I feel the need...
Behind China's Luxury-Car Boom
The appetite for high-end autos seems insatiable in the world's largest car market. Ian Robertson, BMW's head of sales and marketing, offers his thoughts on the Chinese car consumer and market
http://online.wsj.com/article/SB1000...?mod=rss_Autos
China became the world's largest car market in 2009, selling nearly 13.6 million vehicles and surpassing the U.S's 10.4 million sales that year. While automotive sales slowed in almost every other country due to the global recession (India was an exception), overall car sales in China jumped by 48%, according to Autodata Corp., an automotive statistical data company.
China has also staked a sizable claim in the luxury-car sector. BMW Group, which includes BMW, Rolls-Royce and Mini, saw many markets around the world decline 25-30% in 2009—overall global sales for the company dropped 10%, the company said. But BMW and Rolls-Royce sales in China were up 37% that year. (BMW is the second top seller of luxury cars in China, behind Audi.) Mercedes-Benz says its sales in February were up 160% in the country compared to the same month in 2009. Audi reported a 61.7% jump for the same period.
Why is China seeing such numbers? According to Ian Robertson, CEO of Rolls-Royce and BMW's sales and marketing board member, it's a combination of factors.
"In its boom years, the country has never known a recession. They certainly didn't feel the [current] recession in the way Europe and the U.S. did," Mr. Robertson says. He says Chinese consumers never changed their spending habits, even when the global financial meltdown hit, largely because the Chinese government injected 4 trillion yuan ($400 billion) worth of stimulus money into its economy at the end of 2008 and first half of 2009.
"Consumers had total faith that the government had fixed the problem. That's why they kept buying cars," he says. Part of the Chinese government's stimulus included subsidies for car buyers in rural markets and other tax incentives, which prodded first-time owners into the marketplace.....
China has also staked a sizable claim in the luxury-car sector. BMW Group, which includes BMW, Rolls-Royce and Mini, saw many markets around the world decline 25-30% in 2009—overall global sales for the company dropped 10%, the company said. But BMW and Rolls-Royce sales in China were up 37% that year. (BMW is the second top seller of luxury cars in China, behind Audi.) Mercedes-Benz says its sales in February were up 160% in the country compared to the same month in 2009. Audi reported a 61.7% jump for the same period.
Why is China seeing such numbers? According to Ian Robertson, CEO of Rolls-Royce and BMW's sales and marketing board member, it's a combination of factors.
"In its boom years, the country has never known a recession. They certainly didn't feel the [current] recession in the way Europe and the U.S. did," Mr. Robertson says. He says Chinese consumers never changed their spending habits, even when the global financial meltdown hit, largely because the Chinese government injected 4 trillion yuan ($400 billion) worth of stimulus money into its economy at the end of 2008 and first half of 2009.
"Consumers had total faith that the government had fixed the problem. That's why they kept buying cars," he says. Part of the Chinese government's stimulus included subsidies for car buyers in rural markets and other tax incentives, which prodded first-time owners into the marketplace.....
09-11-2017, 05:57 PM
#12
Safety Car
Cnn
China wants to ban gas and diesel cars - Sep. 11, 2017
China is preparing to put the brakes on gasoline and diesel cars.
The country, home to the world's largest auto market, is working on a plan to ban the production and sale of vehicles powered solely by fossil fuels, officials say.The Chinese government is following in the footsteps of countries like India, France, Britain and Norway, which have already announced plans to ditch gas and diesel cars in favor of cleaner vehicles in the coming years.
Related: Ford will create new brand to make electric cars in China
Regulators haven't decided yet when the Chinese ban would take effect, but work has begun on a timetable, according to China's vice minister of industry, Xin Guobin.
He warned carmakers they need to adjust their strategies to the changing situation, according to state-run Chinese news agency Xinhua.
Authorities will offer subsidies of as much as half the retail price of electric and some hybrid vehicles to help buoy production, Xinhua reported, citing an official from the Chinese Finance Ministry.
Related: These countries want to ditch gas and diesel cars
The subsidies are good news for electric car manufacturers.
Dozens of models are already on sale in the world's 2nd-largest economy. International auto giants like Ford (F), and Volkswagen (VLKAF) are aiming to develop fully electric cars in China. GM (GM) already sells the fully electric Bolt in the U.S. and the tiny Baojun 100 in China.
Tesla (TSLA) stock climbed 5% on news in U.S. trading Monday. Tesla sells only all-electric cars and is rolling out its first mass-market car, the Model 3.
The Chinese market is already dominated by domestic manufacturers like BAIC and BYD(BYDDF), which have aggressively pursued the electric vehicle business. BYD shares gained 4.6% in Hong Kong on Monday following the Chinese officials' comments about the potential ban over the weekend.
Chinese-owned Volvo (VOLAF) announced in July that every car it makes from 2019 onward will have an electric motor.
Related: GM is selling a $5,000 electric car in China
Plagued by air pollution, China has been swift to adopt the technology.
Last year, China accounted for more than 40% of the 753,000 electric vehicles sold worldwide, according to the International Energy Agency. That's more than twice as many as the number sold in the U.S.
But while electric sales are increasing fast in China, it remains an overwhelmingly gas and diesel dominated market.
Of the roughly 28 million vehicles sold in China last year, just over 1% were electric, according to the International Energy Agency. The agency defines electric cars as ones powered by batteries or hybrid cars that plug into the power source.
The Chinese government wants 5 million electric cars on the country's roads by 2020.
05-25-2022, 07:07 PM
#13
Race Director
Anyone questioned about which is the third most valuable carmaker in the world may hesitate between Volkswagen or Toyota. Tesla has the largest market cap, but it is very far from the $1 trillion it achieved months ago. Surprisingly, the third most valuable car company right now is BYD.
11 photos
With its share prices hitting $42.92, BYD is now worth $114.03 billion. Volkswagen is in the fourth position, valued at $106.16 billion. In the second place, Toyota has a market cap of $221.32 billion, or a bit more than Volkswagen and BYD combined.
It is not difficult to understand why the Chinese car company is doing so well. Its latest vehicle, the BYD Seal, sold 22,637 units a bit less than six hours after reservations opened (4:20 PM on May 20 in China). BYD itself disclosed the amazing result, which is equivalent to four months of production at this early stage.
The only recent disruption on the wave of good news for the Chinese carmaker was the production suspension at the Changsha plant on May 9. According to CLS, nearby residents began to complain about nosebleeds, nausea, chronic coughing, and dizziness. The local government started investigations, and BYD decided to suspend production for rectification.
Unlike Tesla with its issues at Giga Shanghai, that should not impact BYD in a meaningful way. Its other factories can supply the vehicles that the Changsha plant currently manufactures: e2, e3, Destroyer 05, Qin Plus DM-i, Song MAX DM-i, Yuan Pro, and the K series electric buses. That’s 50% more models than Tesla has in its entire lineup at the Changsha plant alone – without counting the buses.
Apart from making electric and plug-in hybrid cars, BYD is also known for another crucial characteristic: its high verticalization level. The Chinese automaker manufactures its own semiconductors, batteries, other components, and even masks during the worst part of the international health crisis.
In the current automotive environment, that means BYD does not have to wait for suppliers to deliver anything. It just has to increase production. With the e-platform 3.0, Blade Batteries, and a new line of attractive electric vehicles, the Chinese company’s only restriction is reaching more markets. That explains why BYD is now the third most valuable company globally. We would not be surprised if it climbs to higher positions soon.
11 photosWith its share prices hitting $42.92, BYD is now worth $114.03 billion. Volkswagen is in the fourth position, valued at $106.16 billion. In the second place, Toyota has a market cap of $221.32 billion, or a bit more than Volkswagen and BYD combined.
It is not difficult to understand why the Chinese car company is doing so well. Its latest vehicle, the BYD Seal, sold 22,637 units a bit less than six hours after reservations opened (4:20 PM on May 20 in China). BYD itself disclosed the amazing result, which is equivalent to four months of production at this early stage.
The only recent disruption on the wave of good news for the Chinese carmaker was the production suspension at the Changsha plant on May 9. According to CLS, nearby residents began to complain about nosebleeds, nausea, chronic coughing, and dizziness. The local government started investigations, and BYD decided to suspend production for rectification.
Unlike Tesla with its issues at Giga Shanghai, that should not impact BYD in a meaningful way. Its other factories can supply the vehicles that the Changsha plant currently manufactures: e2, e3, Destroyer 05, Qin Plus DM-i, Song MAX DM-i, Yuan Pro, and the K series electric buses. That’s 50% more models than Tesla has in its entire lineup at the Changsha plant alone – without counting the buses.
Apart from making electric and plug-in hybrid cars, BYD is also known for another crucial characteristic: its high verticalization level. The Chinese automaker manufactures its own semiconductors, batteries, other components, and even masks during the worst part of the international health crisis.
In the current automotive environment, that means BYD does not have to wait for suppliers to deliver anything. It just has to increase production. With the e-platform 3.0, Blade Batteries, and a new line of attractive electric vehicles, the Chinese company’s only restriction is reaching more markets. That explains why BYD is now the third most valuable company globally. We would not be surprised if it climbs to higher positions soon.
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