- Global automakers are pressuring China to ease off the electric vehicle sales quotas in the nation. Associations representing 70% of all global auto production want the EV quotas delayed by one to three years.
- Current China regulations maintain that automakers must sell enough EVs or hybrids to generate "credits" equivalent to 8% of sales by 2018, 10% by 2019 and 12% by 2020. Those targets are seen as out of reach for some automobile companies.
- The Chinese automobile market has had a steady year so far, with a 1.6% volume increase at the halfway point to follow up on last year's 16% pop. China is by far and away the largest auto market in the world, more than 50% bigger than the U.S. market and more than five times larger than both the Japan and Germany markets.
- EVs in China, which run from as high as $200K to as low as $6K, are growing in popularity in cities such as Beijing, Shanghai and Guangzhou that have high gas prices, heavy congestion and unhealthy levels of smog.
- Though the number of China/tech/auto JV partnerships is exploding, there are still enough wildcards in the mix to make it tricky business for investors to bet on which companies will prosper in China
- Related automaker stocks: OTC:CQCAF, OTCPK:GWLLF, OTCPK:GWLLY, OTCPK:GELYF, OTCPK:GELYY, OTCPK:BYDDY, OTCPK:BYDDF, KNDI, OTCPK:DNFGY, OTCPK:DNFGF, OTCPK:DDAIF, OTCPK:VLKAY, OTCPK:BMWYY, GM, OTCPK:GNZUF, OTCPK:GNZUY, TSLA, F, OTCPK:NSANY, TM, TTM, HMC, OTCPK:MZDAY, OTCPK:PEUGF, OTCPK:PUGOY, OTC:PUGOF, OTC:RNSDF, OTCPK:RNLSY, MBLY, NVDA, ALV, DLPH.
- Related ETF: CARZ.
- Now read: Late To The Party: SunTrust Likes Nvidia
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