China

China Recorded Huge Jump in Electronic Car Sales in August

Summary:

  • China Association of Automotive Manufacturers’ (CAAM) data has shown a 95% jump in electronic car sales in August, as reported by Sina.
  • Total automobile sales during the month increased 5.3% to 2.19 million units.

Why It Matters:

  • As well as the huge jump in electronic car sales, the Vice Minister of the Chinese Ministry of Industry and Information Technology (MIIT) said China is following developed countries in researching a timetable for traditional automobile companies to stop production of traditional cars and focus only on electronic cars. As a result, the prices of electronic car related stocks including Anhui Ankai Automobile (000868.SZ) and Do-Fluoride Chemicals Co (002407.SZ) rose significantly.
  • The article suggests that market players are pouring funds into the whole electronic car value chain from raw materials to electronic buses as a means of speculating on a total change in the automobile industry.