Wednesday, February 21, 2018

Warren led Buffettbacked BYD electric car boom in China

Популярні відео - Інвестиція і Політика



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Warren Buffett BYD electric car grows sustained boom in China.
BYD will use the proceeds of the offering to fund an expansion of the battery production and research PA.
Electric cars are sold in China than in the rest of the world combined, but are mostly brand models at the local level that are less expensive and have a shorter range than those offered by foreign manufacturers such as Tesla and Nissan.



The market for Chinese brand EV electric vehicle is supported by huge government subsidies as part of Beijing's policy to strengthen global leadership in the conduct of cleaner energy.
China has spent billions of dollars in subsidies to help businesses, including Warren Buffett-backed BYD and BAIC Motor obtain a large-scale production of rechargeable electric vehicles, which are gaining traction among urban drivers and fleets of taxis and government agencies.
Sales of electric battery and rechargeable hybrid vehicles rose 60 percent in January-November, to 402,000 vehicles by 2020, China wants to plug-in 5 million cars on its roads.
BYD's electric car manufacturer backed by Warren Buffett Berkshire Hathaway Bloomberg.
The gift does domestic electric vehicles have the wow factor of a rapid, longer range and luxury style Tesla They sell on price.
In Shanghai last year, a battery with two electric gates Chery eQ costs about 60,000 yuan A11,634 after subsidies Without subsidies, the eQ would cost an additional 100,000 yuan or so at the Detroit Auto Show this week, General Motors unveiled its latest Bolt EV, which costs about US30,000 after a federal tax credit US7,500.



EV cars are very cheap in China, you will only spend a little money to buy a car if you are just going to work or use an electric vehicle in the city, it is OK to use 100 kms, has said Xie Chao, who works for a chemical company in Shanghai.
Xie said he bought three electric vehicles since 2015 - Anhui Jianghuai automobile iEV4 a EV160 BAIC and Geely Automobile Emgrand EV - one for him to use, one for his wife and that he rents.
Most Chinese electric cars come with similar specifications, so the price is the decisive factor, said Zhang Dawei, CEO of EVBuy, a dealer The eQ was the top seller in the last months, with a quality enough decent cheap, he said.
It is a transportation tool, it is only for mobility rather than to show, having a big car for the whole family, or for all technological factors, he added.
Some buyers of electric vehicles in Beijing and Shanghai said they mainly bought vehicles to plug easily get a license plate half a dozen of the largest cities of China tightly controls the license plates for traditional gasoline cars but the price freely plates that can be used by plug-in vehicles.
I considered BYD BAIC and I certainly can not afford the price from 300.000 to 600.000 yuan a luxury style Tesla or Denza, said Qu Lijian, a government worker aged 31 in Beijing, which has opted for a BYD Qin pure electric car.


Denza is a Chinese brand produced by a joint venture between Daimler and BYD.
Cocktail pro-power policies of China is a challenge for global automakers such as foreign manufacturers can access grants through joint ventures with local partners, production of cars under new brand names is for China such as Denza.
But these brands is not the hallmark of established foreign brands and are more expensive than most local brands, even after subsidies.
That's partly because Chinese automakers are more aggressive in lowering their costs regardless of quality, said an executive in a multinational company of auto parts.
The lowest price wins the contract which is the process, no questions asked, said the executive, who declined to be identified in order to avoid an impact on future auction contracts.



And when you win, they come back and ask for another price reduction, the executive added, noting less stringent safety regulations in China also help to reduce costs than the US.
The version of the sheet joint venture of Nissan Dongfeng Automobile offer in China, under the Venucia brand is not sold very well, global head of Nissan Carlos Ghosn told Reuters Chinese EV November buyers want to spend that much US8 000 after incentives, and Nissan is too expensive, Ghosn said.
The playing field for foreign brands in China should, however, gradually, even as subsidies are gradually 2020.
This year, grants were cut by a fifth, adding probably about 15,000 yuan price of a Chery eQ, although 2017 official subsidies for individual models aren t yet clear, EVBuy note.
Local electric vehicle manufacturers, with the help of subsidies, were able to achieve economies of scale, driving their cost per unit and allowing them to spend more on research and development, Li Yunfei, BYD Chief Deputy brand and public relations, told Reuters.
By 2020, China will have no subsidy, but your scale increased, costs have fallen, and you'll be able to hit a price that consumers can accept, he said.



While China has seized the advantage early engine, global automakers ramp quickly provide their plug-in deals in the biggest market of local GM joint venture in the world, for example, promises to spend May 26 US3 billion yuan 8 billion on electrification and development 10 new energy models by 2020.
Chinese brands such as BYD and GAC Motor seek to advance on home turf global rivals.
GAC engine, part of Guangzhou Automobile Group, debuted its pure electric SUV GE3, among other models at the Detroit salon Monday a spokesman told Reuters that the company plans to enter the States States by 2019, delaying an initial target of 2017, without further explanation.
BYD headquartered in Shenzhen already sells its electric buses in Africa, Europe and South America and has a plant in the US The company is prepared on all fronts to penetrate the markets of foreign cars, Li said, without details.



Because Chinese companies this large Chinese market, when they have enough scale and power increases, improve their products and include more foreign markets, he said.
In the future, they will certainly take the world stage The potential is enormous.







Warren led Buffettbacked BYD electric car boom in China, Warren, discs, porcelain, electrical.





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