BYD pushes further into Chile thanks to 100-strong electric bus fleet
Chinese electric automaker giant BYD has been on a quest over the last few years to partner with as many Chinese cities as possible, bringing its fleets of electric vehicles to public transportation systems. Now, it wants to take that mission global – and it’s gaining a firm foothold in Chile. On Thursday, BYD announced that it’s shipped 100 electric buses to Santiago, the country’s capital city, making an important in-road into Latin America.
BYD’s share price has appreciated by 12% over the last three months
Source: Yahoo Finance
BYD is the only electric public bus provider operational in Chile, and it sent its first fleet to Santiago last November. The country is in the midst of a green revolution, where electrification offers a promising route to the reduction of dangerous levels of smog. Chile is also on the map of China’s grand Belt and Road initiative, which aims to bring incredible infrastructure and investments to some of the world’s less-developed regions.
In a public statement, BYD wrote: “With the help of ‘One Belt One Road,’ BYD has successfully entered Chile, Colombia, Ecuador, Brazil, Uruguay and other Latin American countries. As the region accelerates its electric revolution, BYD may be able to win more opportunities.”
Santiago has 7,000 public buses, and around 400 are replaced annually. Many of those replacements will be electric, and the Chilean government has promised to increase the number of electric vehicles on the road by a factor of ten before 2022. BYD’s buses are popular too – in a survey that sees public vehicles rated on a seven-point scale, BYD’s buses received an average mark of 6.3 – well above the Santiago public transportation system’s average of 4.6. Taken together, these factors add up to a promising future in Chile and, if it continues to go well, Latin America.
Dominion holds BYD in its Global Trends Managed Fund.
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