According to Bloomberg News on September 22, cars powered by traditional fossil fuels will gradually withdraw from the Chinese market. In order to comply with this trend, Daimler and BYD will deepen cooperation and introduce new electric vehicles in response to market changes.
The new energy electric vehicle brand Tengshi Automobile is located in Shenzhen and is a joint venture established by BYD and Daimler under 50:50. On the 21st, BYD Chairman Wang Chuanfu said in an interview in Shenzhen that BYD is considering adding more investment to Tengshi New Energy Automobile Co., Ltd.
Wang Chuanfu revealed that the two sides are joining forces to build more models for Tengshi Auto, but did not disclose specific details. At present, Tengshi Automobile has only one five-seat sedan model released in 2014. Since 2014, the brand has not achieved profitability.
It is believed that there is a support from Warren Buffett behind the Tengshi Auto. Like many automakers, with China's policy support for new energy vehicles, it sees that it has huge market potential and is willing to share a piece of it. China will have an ultimatum for gasoline and diesel sales, so demand for zero-emission vehicles will surge. At the same time, a spokesman for the Chinese Ministry of Commerce said that in addition to the introduction of policies to stimulate sales of electric vehicles, China will further relax restrictions on new energy vehicles by foreign capital.
In 2012, Daimler and BYD reached a partnership to jointly produce and sell Tengshi brand electric vehicles. In May of this year, BYD announced that it would add an additional 500 million yuan to Tengshi Automobile, and Daimler will increase its capital accordingly.
Foreign companies such as the Volkswagen Group have also adopted a similar approach to Daimler to seek partners in China to circumvent the current problem of restricting the establishment of electric vehicles by foreign companies.
There were reports on September 20 that the Chinese government is planning to allow foreign car companies to establish wholly-owned electric car companies in China. The existing rule is that foreign car companies must cooperate with Chinese car companies to develop electric vehicle manufacturing business.
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