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The two major auto companies in Guangdong will soon be married. When deputies of the Guangdong Provincial People's Congress visited Conghua and Zengcheng for poverty alleviation and development, the vice mayor of Guangzhou and Secretary of the Zengcheng Committee Cao Jianbiao disclosed that the pure electric vehicle project of Guangzhou Automobile Group and BYD cooperation has been finalized and settled in Zengcheng. Li Yunfei, deputy general manager of BYD Auto Sales, responded that BYD did negotiate with Guangzhou Automobile Group, but it has not yet been finalized.
Or produce pure electric bus
“We now have two auto plants. We recently talked with BYD about a pure electric vehicle project and it was finalized last week.†On November 21, 2013, Guangzhou Vice Mayor and Zengcheng Committee Secretary Cao Jianzheng According to the deputies of the National People's Congress, Zengcheng will soon increase an automobile project. This project was jointly established by GAC Group and BYD. Among them, Guangzhou Automobile Co., Ltd. holds 49% of shares and BYD holds 51% of shares. It is preparing to produce all-electric vehicles.
According to reports, at present, Zengcheng City already has two factories, Guangqi Honda No. 3 Plant and Beiqi Group South China Production Base. Cao Jianyu said: "In this way, there can be only three cars in a county in the country."
Although it is not clear what specific cooperation areas between BYD and GAC are, it is reported that BYD has been hoping its electric buses will be able to enter the bus procurement list of Guangzhou City. Therefore, the cooperation between BYD and GAC is likely to be replicated in Chengdu and Nanjing. The practice of Tianjin and other places mainly produces pure electric buses.
Both sides can achieve complementary advantages
“We did negotiate with GAC Group, but it is still in the negotiation stage and it has not yet been finalized.†Last week, Li Yunfei, deputy general manager of BYD Auto Sales Co., Ltd., responded when asked about related issues. If the time from Wang Chuanfu’s visit to Guangzhou in April this year is calculated, the negotiations between the two sides have been for half a year.
One is the largest state-owned automobile group in the province and one is a well-known private automobile manufacturer. Perhaps because of the different backgrounds of the two parties, Guangzhou Automobile Group and BYD, both of which are car companies in Guangdong Province, have had no previous contacts.
Over the years, GAC Group has focused on seeking more foreign brand partners, while BYD has been immersed in the development of its pure electric vehicles. There is not much business between the two parties in the areas of technology research and development. Until Guangzhou Automobile Group launched its own brand biography, the two sides did not form a direct conflict in the market. BYD's traditional gasoline vehicle products are mainly concentrated in the low-end market, while GAC is mainly engaged in high-end routes. However, with the advent of new energy vehicles, GAC and BYD finally have an intersection.
As a leading manufacturer of secondary rechargeable batteries, BYD has always been known for its battery technology. In 2003, BYD held high the banner of electric vehicles, hoping to rely on its own battery technology to promote the arrival of the era of electric cars.
GAC Group's business has been concentrated in the traditional fuel vehicle area. To date, it has successfully established automotive joint ventures with Toyota, Honda, Fiat, Mitsubishi and Hino. In the field of new energy vehicles, GAC Group has introduced a number of concept vehicles, including three new energy models at the North American Auto Show this year. They are the Chuanqi GA four-wheel drive hybrid, Chuanqi GS5 pure electric vehicles and Guangzhou Automobile E- JET increases the electric concept car, but so far no new energy car has been commercialized.
At least from a technical point of view, BYD and Guangzhou Automobile Group can form a good complement, the former advantage is mainly in battery technology, while the latter's main advantages in the vehicle platform, management and marketing. On the other hand, both BYD and GAC Group have been very open about cooperation. GAC had previously reached cooperation agreements with Gio, Chery, and Zhongxing Automobile, and BYD conducted similar cooperation with several cities.
BYD and Guangzhou Automobile hand in hand have signs
In April 2013, Guangzhou Municipal Party Committee Secretary Wan Qingliang and Mayor Chen Jianhua met with Wang Chuanfu, Chairman and President of BYD Co., Ltd., and conducted in-depth exchanges on energy-saving emission reduction, urban public transportation issues, and strengthening cooperation on new energy vehicles. In August this year, there was news that BYD planned to set up a factory in Zengcheng.
In order to promote pure electric vehicles, BYD has made various attempts. Different from the private consumption market, it is difficult to start. BYD found out in Shenzhen that it is more efficient to promote pure electric vehicles in urban public transport systems rather than the private consumer market with high procurement costs and uncontrollable business risks. In the past two years, BYD has always insisted on giving priority to the promotion of pure electric vehicles in the public transportation system.
However, BYD faced a problem in its promotion in the field. BYD President Wang Chuanfu explained that for localization considerations, local governments tend to purchase products produced by local companies, which is the practice of domestic public transportation system procurement. “To solve this type of problem, our approach is to set up factories in the local area,†Wang Chuanfu said. Currently, BYD has successively promoted the deployment of electric vehicles in Shenzhen, Chengdu, Nanjing and Tianjin.