Let's start with a look at the latest news from Geely announced that Liu Jinliang of his earlier role as head of the company focused that relied sale exclusively on the development of the EV business. (Company announcement) In the effort to ease the concerns, that move could constitute a downgrade is Geely quickly add that Liu will retain his role as executive Director of a company.
I'm no expert on the inside workings of Geely, but the last character appear at this step really represents what Geely says namely, Ernst his EV business to develop. The company have been weak sales in recent years, when it lost to aggressive foreign share. But it has done relatively well in this year with revenues by 21 percent in the first four months as it works to revive the traditional auto business 2013. At its annual meeting last week in Hong Kong, Geely said also expected to accelerate growth in the second half of the year as it introduces new models. (English article) Certainly, that doesn't sound like the kind of performance that would earn a demotion for Liu.
Geely also plans roll out electric car model in the second half of the year, which interpreted EC7 a big boost for the car of Liu's move could be related. Latest step would come only three months after Geely, a new joint venture announced, with electric cars Kandi technologies to produce (NASDAQ: KNDI), again emphasizing the company's intention to make a serious offer in the EV space.
Let's take a quick look at BYD, which Warren Buffett invested company that programs aimed at, its electric taxis and buses to sell only the latest in a series of pilot to fleet owners outside of China has announced by Geely. The company has already launched test programs in Europe and the United States and his home town of Shenzhen, and now has another program in Hong Kong just started. (Company announcement) This current deal see electric taxis 45 BYDs initially in the area of the former UK rolled out and contains a program to build up the necessary charging infrastructure.
As a former Hong Kong resident I have to say that this current deal looks very encouraging for me due to the heavy reliance on the territory on taxis as part of the public transport infrastructure. This pilot program could easily be a major selling point for BYDs EVs do Hong Kongs taxis on crowded streets. But BYD could suffer even a heavier blow, if there are many problems, that's always a possibility with this kind of new technology. Enough to some of its EV-pilot programs see everything said, is the latest step for BYD the company sees certainly positive - if it can survive long after all fruits with large fleet and finally the sale of consumer goods.
Bottom line: New moves by Geely and BYD to specify that the EV space is gaining momentum among China's domestic automakers, which increase the psychological sector.
This blog was originally released on young's China business blog and was published with permission.
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