Why International Crooks Look at the Development of New Energy Vehicles in China's Private Enterprises

Recently, various advantages of new energy vehicles have been heard. The introduction of new energy vehicle subsidy policies, the establishment of a new energy vehicle "national team" alliance, the expansion of subsidies for pilot cities, and new energy vehicles have been identified as national strategic industries. Wan Gang, Minister of Science and Technology, also stated in the near future that at present, China's new energy vehicles are in a critical period from the R&D stage to the industrialization stage, and the next five years will be a crucial five years for the development of China's new energy vehicles.

The excitement is not only at home, foreign capital, and companies are also like a comeback. First, Buffett is optimistic about BYD's new energy vehicles, and Mercedes-Benz Chrysler is working with BYD to develop new energy vehicles. Recently, there have been reports from the media that Rogers, an international investment tycoon, has been in contact with Zotye Group and has been driving a “driver show” on Zotye electric vehicles in Shanghai. Why is it that such a short time, so many well-known global investors have turned their attention to China's new energy vehicles, especially private enterprises?

First, the general direction of national policy. From the initial concern, the support of the care of the head to the current subsidy pilots and national strategies. The Chinese government has made clear directions for the development of new energy vehicles on policy orientation and established a clearer timetable. The international capital that is familiar with the value of China’s policies is certainly also sensitive.

Second, private enterprises accumulated significant advantages. Compared with traditional car companies, BYD, Zhongtai and other private enterprises are relatively early on in the strategic vision and behavior in the field of new energy vehicles. Therefore, although state-owned enterprises have established a new energy auto alliance, smart international capital clearly sees the major benefits of the accumulation of private enterprises in the field of new energy vehicles during the initial growth period of the new energy market. On the other hand, with the clear ownership structure of private enterprises and the diversity of external evaluation systems, international capital is more willing to place capital in a capital environment that they are familiar with and can easily control.

Third, the cost leads the market. New energy vehicles are emerging industries from a global perspective. The cost disadvantage of emerging industries has always been an obstacle to the rapid development of emerging industries. The strong cost competitiveness of Chinese companies, especially the strong R&D cost-dilution capabilities of private enterprises, has made it possible for new energy vehicles to reduce the threshold for the use of new energy vehicles with the efforts of several countries, companies, and consumers. Prior to BYD's cost control advantages in the battery industry and the cost control advantages of the auto parts industry before Zotye, they all got a good performance in the new energy automotive field.

Therefore, Buffett's fancy of BYD, Rogers's fancy to the public Thailand naturally has their own sufficient reasons. For these private enterprises, there is no need to overjoy this kind of “foreign family”. Because these international capitals have seen the huge benefits of “head saliva”, they must truly turn “foreign parents” into “self-owned family”. BYD and Zhongtai people need to use more development visions and faster. Market expansion to capture the "flower" of international capital.