More global automakers likely to collaborate with local carmakers in China to accelerate EV output
Renault and Toyota Motor have each signed a deal with a domestic Chinese electrified vehicle manufacturer to jointly produce EVs. China is encouraging foreign automakers to strike similar deals with domestic producers in order to expand EV output in the country.
Collaboration between foreign automakers and local peers on EV production started in 2017 when government revealed plans to introduce a carbon credit program to push manufacturers into hiking output of electrified vehicles.
In June 2017, Volkswagen Group signed an agreement with Jianghuai Automobile Co. to produce EVs for China market. Ford Motor Co. and BMW Group also collaborated with Zotye Automobile Co. and Great Wall Motor Co., respectively next year.
VW, Ford and BMW have all chosen to incorporate new EV production ventures with local partners, which are subject to lengthy regulatory approval in China. Renault this month formed a joint venture with Jiangling Motors Group’s EV subsidiary by purchasing a 50 per cent stake in the subsidiary for RMB 1 billion.
Through these joint ventures, VW, Ford, BMW and Renault expect to churn out affordable Evs in China market under the ventures’ proprietary brands. The agreements will allow these four global automakers to share the carbon credit points generated by the EV joint ventures
As Toyota wants more commands in their local partnership, the company has signed JV agreement last week with BYD Co., China’s largest EV maker and second largest EV battery supplier. The jointly developed EVs, including sedans and crossovers, to be launched in China market by 2025 will be distributed under the Toyota brand.
Sales of electrified vehicles such as EVs, plug-in hybrids and fuel cell vehicles registered a rise of 50 per cent to approach 617,000 in H1 2019. As the subsidies on EV are to be phased out at the end of 2020, the government wants to further push electrified vehicle production over concern of sales drop.
Under the carbon credit program, electrified vehicles have to comprise about 10 per cent of annual sales of automakers in 2019. More global automakers are expected to team up with local carmakers in near future to accelerate EV output.
source: Alcircle
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Gold loses some luster after Trump’s decisive win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Families gather at South African mine shaft where hundreds are feared stuck underground
Higher silver supply to reduce global deficit by 4% in 2024
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
