and Geely. It said that BAuto’s strategy to tie up with a Chinese pure EV player as its primary EV brand is the right move, but added that securing distribution rights wasn’t a given.
“Any successful tie up with any of these larger Chinese EV players would be a plus for BAuto, but existing automotive players in the country may also be seeking such strategic plans, and thus it may be challenging , especially going up against the bigger players with a stronger financial position and distribution network,” the report said.
Should this not materialise, AHIB said that shifting its focus into lower price segments would allow BAuto plenty of space to maneouvre. “Nevertheless, given the breadth of Chinese EV brands, affordable EV brands like Hozon or Wuling can cater the low to mid-income group and most importantly become a volume driver for the company’s EV segment. This could be an interesting proposition, in our view,” the report said.
It should be noted that Chinese automaker Hozon already has representation in the country, with GoAuto already bringing in the