On 21 Jan., 2015, BAIC BJEV noted the plan to go listed during 2016-2020 (the 13th Five-year Plan), and the goal to establish a production capacity of 800,000 alternative energy vehicles per annum by 2020. Despite its good performance, its future development probably will be decided by government policies, according to CCM.
Source: Baidu
On 21 Jan., 2016, Beijing Electric Vehicle Co., Ltd. (BAIC BJEV, held by BAIC Motor Corporation Ltd.) announced clearly that it would go listed during 2016-2020 (13th Five-year Plan), market value expected to reach USD15.38 billion (RMB100 billion).
Then it is reported that the company transferred its 100% of shares in BJEV Hong Kong Co., Ltd. on the China Beijing Equity Exchange. This, obviously, is aimed at paving the way for listing.
In addition, BAIC BJEV for the first time unveiled its strategic planning during 2016-2020: sales of alternative energy vehicle to reach 500,000 units, about 1/4 of the national figure (2 million units).
“Whether BAIC BJEV will achieve the goal or not is reliant on how it clears away the obstacles during promotion and how government policies changes in future”, commented Zhang Zhiyong (senior analyst in vehicle industry) to Securities Daily.
Market value aimed at hitting USD15.38 billion (RMB100 billion)
In 2015, BAIC BJEV cumulatively sold 20,100 battery electric vehicles (BEV), up by 3.6 times YoY and 25.8% of the national figure. Significantly, 2015 was an abundant year to the company.
In the next two years, BAIC BJEV will develop 3 star vehicle types, each set to sell 100,000 units annually. “Based on this, the sales of these 3 vehicles will total about 300,000 units annually”, stated Zheng Gang: “In 2017, we will launch EX series (name probably to be changed later), full aluminum space frame designed micro all-electric cars. If the Small E series on sale are calculated, we at least will have 3 vehicles sold at slight profit and large quantity”.
It is notable that BAIC BJEV also targets at taxi market. “We will gradually replace the current 68,000 taxies in Beijing”, continued Zheng Gang.
Regarding this, Zhang Zhiyong commented to Securities Daily: “The taxi money (contracting fees submitted by taxi drivers to taxi companies) for electric taxi is much higher than that for oil-fueled taxi. If taxi money is excluded, taxi drivers will more actively substitute electric taxi for oil-fueled taxi. When there are 60,000 electric vehicles, the problem of charging points will be solved”.
New business
In addition to conventional business, BAIC BJEV will develop new business. Accordingly, it has already established B2B (= business to business) and B2C (= business to consumer) BEV periodic renting service companies, respectively targeted at government vehicle and general public.
According to BAIC BJEV, the said 2 service companies are aimed at offering 8,000-10,000 units in 2016.
"If it is only the B2B pattern, its renting will be restricted by the limited government activities. However, the B2C pattern will help expand the market”, analysed Zhang Zhiyong: “Alternative energy vehicle can ensure the highest attendance rate and the lowest use cost. Nonetheless, now people have no strong consumption awareness about it. In the future, periodic renting will have broad prospect”.
According to Securities Daily, in the next two months, BAIC BJEV will invest in setting up 2 companies, separately involved in charging business and battery business.
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Tag: alternative energy vehicles, BAIC