The Chinese Are Coming - #48

THE CHINESE CONVERGE ON FRANKFURT


This edition of the ZoZo Go newsletter is sponsored by:


Page 1: The Chinese Converge on Frankfurt
Page 2: Electrics - Autonomous - Connected & Shared - New Deals


During my training days at Quantico, I learned the first rule of reconnaissance: Go directly to the target area and see things for yourself.

Occasionally there are exceptions to the rule. For example, the Frankfurt Auto Show. I am not in Germany this week but I am getting a tremendously vivid picture of happenings on the ground, thanks to some first-class reports from the front lines.

Take this description of the scene by Bernstein's highly-regarded Max Warburton:

"Traffic hell on the way in, it is too hot, too loud, there is too much to see, miles to walk and lots of middle-aged men who think they look good in trainers."

Hilarious and accurate, both.

It appears that hot, long, loud and crowded is no problem for the Chinese. According to a report today from the respected Joe White at Reuters:

"Chinese automakers and suppliers now make up the largest foreign contingent at the Frankfurt Auto show."

The largest foreign contingent. Think about that. There are still no Chinese cars on the Autobahn, yet the Chinese are poised to strike, to make Germany their European home away from home.

(Photo: Byton's dramatic, futuristic interior will be navigating the Autobahn as soon as next year)

(Photo: Byton's dramatic, futuristic interior will be navigating the Autobahn as soon as next year)

There are an incredible 79 Chinese companies demonstrating their wares this week, many of them concentrated in the EV arena.

“They no longer look out of place alongside international established marquees,” said Peter Campbell, Motor Industry Correspondent for the Financial Times.

In addition, German companies are doing major deals with Chinese battery suppliers like CATL, to meet tough EU emission rules.

Here is an updated list of Chinese OEMs, with firm plans for European market entry via Germany:

- Aiways: EVs in 2020

- Byton: EVs in 2020

- Chery: EVs in 2021

- Great Wall (Ora) EV: 2021

- Lynk & CO: 2020

- NIO: EVs in 2021

- Volvo (owned by China's Geely since 2010)

What about Geely, you say? China's largest private automaker does not have a formal Frankfurt presence. But who needs a booth when you are the largest foreign shareholder in Daimler?

Recon Report Summary: Frankfurt is hot and crowded. The Chinese like it that way.

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About Us: ZoZo Go advises companies on the future of autonomous, electric and connected vehicle in the U.S and China. Our clients: Automakers, suppliers, tech companies and investors.

ZoZo Go's core offerings: The ACES Genius Briefing and The China Genius Briefing. We operate from offices in Hong Kong, San Diego and Shanghai.

For more, visit zozogo.com.




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Page 2


Electrics - Autonomous - Connected & Shared - New Deals



Electrics



Evergrande's EV shopping spree continues with the acquisition of an advanced chassis from German engineering leaders, Benteler and FEV. Evergrande's vision is nothing if not bold: Plans are to spend $23 billion dollars into three battery and assembly plants, to build 1 million EVs per year.

China aims to make EVs and fuel cell vehicles 40% of total vehicle sales by 2030 and 60% by 2035.

Chinese hydrogen fuel cell vehicle sales reached 1,106 vehicles through July, which is 9x higher than last year.

VW, Audi and other global automakers are increasing purchases from China's leading battery makers: BYD, CATL and Guoxuan.

Autonomous



Meituan steps into mapping to get an edge in driverless delivery services. Meituan currently connects 320 million users with 4 million merchants.


Connected and Shared


Didi plans to launch robo-taxis in Beijing, Shanghai and Shenzhen by next year, then deploy globally in 2021.



New Deals


WM Motors, a leading EV startup, has been hit with a $293 million lawsuit by Geely, China's largest private automaker, for IP infringement. WM has delivered more than 8,000 vehicles so far this year, surpassing NIO and Xpeng for the pole position among EV startups.

Geely leads $55 million round in Volocopter, the German air taxi service. How to say "empire" in Chinese: Volvo, Lotus, Terrafugia, Daimler, Lynk & Co, Proton, LEVC....Volocopter.

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