Now is the time we juxtapose. Following on the earlier posts, "Earnings Doubts Reign as BYD Stock Set for Fifth Month of Losses" and "Ahead Of The Trump-n-Xi Meeting: China's 15th Five-Year Plan"
From Reuters, October 29:
- Beijing omits NEVs from strategic industries in 5-year plan
- Inclusion in previous plans saw billions of subsidies pour into sector
- China's EV industry now world leading, seen as mature - analysts
- China EV exports surging
- Market to play a bigger role in deciding who survives
China has sent a clear signal that it is willing to pull the plug on subsidies for its electric vehicle industry after years of big-ticket government support fuelled a boom that has left the world's second-largest economy saddled with vast oversupply, prompting it to push into global car markets.Top policymakers omitted electric vehicles from their list of strategic industries in their recent five-year development plan for 2026-2030, the industry's first exclusion in more than a decade.Analysts say the move is evidence the Beijing considers the industry to be mature and no longer requires the same level of financial support, leaving its development up to market forces.But they say the omission should not be seen as a sign that the EV industry has fallen out of favour, despite it becoming a poster child for excessive competition that even President Xi Jinping has criticised. Instead, it reflects a strategic decision to allocate resources to other technologies where China seeks to enhance its capabilities, especially in light of global trade and security tensions.MARKET TO PLAY A BIGGER ROLE
"It's an official acknowledgement that electric vehicles no longer need prioritised policies. Electric vehicle subsidies will fade," said Dan Wang, China director at consultancy Eurasia Group."China already dominates in EV-related tech and batteries so there is no point prioritizing it. It doesn’t mean the government will require capacity to be cut, but the market will play a bigger role in deciding who survives," she said.New energy vehicles (NEVs) - a category comprising EVs, plug-in hybrids, and fuel cell vehicles - were included as strategic emerging industries in the previous three five-year plans, which encouraged Chinese authorities to pour in billions of dollars to encourage automakers to produce EVs and consumers to buy them.That support gave rise to a supply chain China now controls with such EV champions as BYD. It also made China into the world's largest NEV market - by July 2024 NEVs accounted for over 50% of total auto sales in China, more than 10 years ahead of the goal policymakers had initially set....
....MUCH MORE
It's enough to make one wonder if perhaps some large shareholders at BYD were aware this was coming.
And I'm not just talking large Chinese shareholders:
September 22 - BYD: "Warren Buffett dumps stake in Chinese Tesla rival amid £31bn exodus"
