BYD's 60 Million Acquisition of Sanxiang Bus America's Group withdraws from the Automotive Industry

BYD, which has achieved development in the passenger car business, has begun to march into the passenger car field. On the previous day (26th), BYD Co., Ltd. announced that it had spent RMB 60 million to purchase the entire equity of the passenger car in Changsha, Hunan, and obtained the qualification for the production of buses and buses. The Midea Group, which focuses on home appliances, said that the group will withdraw from the auto industry and the remaining two auto business disposal plans have not yet been decided.

Through this acquisition, BYD will be able to expand its product line into the commercial vehicle segment and extend the application of new energy technologies to the bus segment. Has been committed to the development of electric vehicles, it is to attract the United States famous investor Warren Buffett shares the main reason for BYD.

According to the announcement, BYD entered into an investment cooperation agreement with the Hunan Environmental Protection Industrial Park Management Committee and the Changsha Economic Commission, and plans to build a new base in Changsha with an annual output of 400,000 vehicles and auto parts. Among them, 200,000 vehicles will start construction in late September this year.

Data show that in the first half of this year, BYD sold a total of 176,800 vehicles, an increase of up to 176% year-on-year, ranking first in sales of its own brands.

Yesterday, Huang Xiaoming, vice president of Midea Group, told reporters that the Group's strategic adjustment is clear and will focus on home appliance business in the future.

Previously, Midea Group acquired Yunnan Bus Factory, Yunnan Aerospace Shenzhou Automobile Co., Ltd. and Hunan Sanxiang Passenger Car from 2004 to early 2006, and plans to become a leading domestic passenger car manufacturer in 3-5 years. Since then, the Sanxiang passenger car in the United States was completely shut down at the end of 2008.

As for how to deal with the other two auto businesses of the U.S. Group, Huang Xiaoming said yesterday: “There are no specific plans, but they will withdraw.”

It is understood that the withdrawal of the United States from the automotive industry is another case in which white goods manufacturers have abandoned their diversification strategy in recent years. Previously, Oaks and Chunlan Group have been involved in the automotive industry and have withdrawn.