German private equity investor Mutares rides China’s EV sector ramp-up as domestic players take charge
- Mutares sees mainland China’s car assemblers and auto-parts makers playing a dominant role in the electrification of global auto sector
- The PE investor plans to open an office in Shanghai, its first on mainland China, in the first quarter of 2024
German private equity investor Mutares is betting on China’s automotive sector, a driving force behind the global transition to electric vehicles (EVs), expanding its portfolio of investments that benefit from the go-global drive of the country’s carmakers.
China’s vehicle electrification journey which began over a decade ago is now accelerating as it gets additional tailwind from the global trend of decarbonisation and sustainability with EVs emerging as a viable and attractive solution to the climate change crisis.
Mutares, which focuses on the acquisition of parts of large corporations via carve-outs and medium-sized companies in transitional situations, is convinced about the country that has now produced and sold more EVs than any other country or region.
“China is a super important market for us for there is a lot of growth here and we believe this is the motor for the entire economy all over the world,” Robin Laik, chief executive of the investment company, told the Post during his three-day visit to China. He said that mainland China’s car assemblers and auto-part manufacturers will play a dominant role during the transition of the world’s automotive industry toward e-mobility over the next three to five years.
“I really think that the next three to five years will be the years of China in Europe [in terms of EV development],” he said.