"The Chinese government wants to have 500,000 electric cars, lorries and buses on Chinese roads by 2015 and 5m by 2020. It is providing customers with subsidies worth up to 60,000 yuan ($9,250) and other incentives, too. If it carries on doing so, electric cars and plug-in hybrids could account for 7% of new-car sales in China by 2020, says a forthcoming report by the Boston Consulting Group. That would make China the biggest market for electric vehicles, by volume, in the world."
The article also discusses BYD (HK:1211, Pink Sheets: BYDDF, Frankfurt Xetra: BY6) - the company that claims that their e6 electric car has a range of 300km (186 miles), which is about twice that of Nissan’s Leaf.
"BYD is struggling, however, to get its new e6 electric car to market. It was supposed to go on sale in America last year, but was not ready. It is now being tested by taxi fleets in Shenzhen, where BYD is based."
BYD stock price has been declining for a long time now due to not meeting the high expectations after it became public in September 2008 that Billionaire Warren Buffett's Berkshire Hathaway has bought 10% stake in it through MidAmerican. The stock rallied after the announcement, but has been on the decline now for about two years.
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The author was long BYD at the time of writing.
See also these two BYD related posts:
ReplyDeletehttp://thoughtsofaprivateinvestor.blogspot.com/2010/12/byd-build-your-dreams.html
http://thoughtsofaprivateinvestor.blogspot.com/2011/02/added-to-byd-position.html
China's goals are very expansive, but that's not to say that they're unachievable. If their target is electric cars, then 2020 is a fair target year. But I wonder how that would affect the industry.
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