Will Chinese highways be completely electric by 2030?
Wang Chuanfu, chairman of Chinese automaker BYD Co. Ltd. has said that he expects all cars in China to be electric by 2030. This is an aggressive prediction: it amounts to moving an entire automotive sector onto a whole new type of energy in a little over 12 years. However, there are some compelling reasons to think Wang could be onto something.
BYD’s share price has risen by an incredible 78% in just 30 days!
For one thing, electrification (along with automated driving software) is becoming an increasingly popular concept worldwide. For another, the world is moving fast against climate change, with a number of countries looking to phase out all diesel cars over the next few years. Of these, China is the biggest contributor to climate change, and the most adamant to reverse that negative reputation.
It’s also true that the Chinese have displayed an incredible ability to embrace the latest trends and technology over the last decade – something that saw them transform from a largely rural nation into the world’s biggest Ecommerce market.
China is keen on electric cars already. The country already wants electric and “plug-in hybrid” vehicles to make up over 20% of the traffic on Chinese roads by 2025. Speaking at an event in Shenzen, Wang was very clear that he thinks they will make this date, and even beat it. He told listeners:
“We are very confident about the timetables to eliminate fossil fuel cars and we think it will happen earlier than expected. Various governments have announced timetables to end the sale of fossil fuel cars and this is putting pressure on everyone else.”
Dominion holds BYD in its Global Trends Managed Fund.
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