BYD in talks to provide India with electric vehicles
It seems like Chinese electric vehicle specialist BYD is moving into new territories every month. At the end of June, the country in question is a potential goldmine: India. After BYD’s domestic market of China, India is widely seen as the next great growth story of the developing world. With an automobile market that’s been billed as becoming the world’s third-largest by 2025, it’s a market that’s high on the Chinese clean energy specialist’s list of priorities.
BYD’s share price has increase by 3% over the past month
Source: Yahoo Finance
Two people familiar with the matter, who declined to be named, told online news source Live Mint that BYD was set to make a “significant” investment into India to develop and produce electric vehicles. They continued that the company was looking to make its investment plans public by the end of 2019, or the start of 2020.
According to the anonymous sources, BYD is in talks with Olectra Greentech Ltd, its Indian partner, to “either form an equity joint venture or invest in a stand-alone entity in the country”. This partnership is a solid one: Olectra is currently responsible for the assembly of BYD’s electric buses in Andhra Pradesh and has started assembling lithium-ion cells in Chennai.
Although the people declined to divulge knowledge of the likely investments BYD was planning, they did make the following statement about the company: “They are encouraged by the vision of the Indian government when it comes to promoting electric mobility and the mandate it got in the recent elections. Apart from that they have also studied the potential for that the Indian market offers to electric vehicle manufacturers.”
Dominion holds BYD in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.