Across The Border | Makers of electric cars to benefit from coming boom in global demand
A worldwide wave of adoption for new energy vehicles is set to transform the fortunes of a select group of automakers, analysts say
As China strives for a big leap to a more sustainable consumer-led economy, the rise of new energy vehicles looks set to have profound impact and deliver significant opportunities for savvy investors.
New energy vehicles (NEVs), including hybrids, plug-in hybrids and electric cars, have undergone explosive growth during the first three months of this year, offering up a bright spot in China’s cooling economy. The China Association of Automobile Manufacturers (CAAM) reported Thursday that sales of NEVs sales doubled in the first quarter from a year earlier at 58,125 units.
Among the NEVs, electric car sales increased 1.4 times year-on-year. Sales of plug-in hybrids jumped 43 per cent.
In January, the CAAM said the output and sales of NEVs more than tripled in 2015, making China the world’s largest market for new energy cars.
“China is experiencing a long-term social shift from old manufacturing story to the rise of consumer spending, “ said HyungJin Lee, manager of the Baring Asia Growth Fund. “A range of sectors will benefit from the new social trend, particularly ones focused on the environment and clean energy and other disruptive technologies.”