Aston Martin Looks to Enter China's EV Boom with Joint Venture
The allure of China's booming electric-vehicle sales is proving to be too hard to pass up for automakers – even luxury ones. Aston Martin, a luxury automaker out of Britain, is planning to move towards an all-hybrid and electric-vehicle lineup and wants to bring something to China.
China's Still Seeing A Lot Of Growth
Despite all of the problems that automakers are currently facing in the country, electric vehicles are extremely popular in China and are only growing in popularity. Seeing the incredible growth that China is having, Aston Martin, as Bloomberg reports, is planning to get a piece of the EV pie.
According to the outlet, the British automaker is looking to enter into a joint venture to help it enter the electric-vehicle market in China. Andy Palmer, Aston Martin's Chief Executive Officer, unveiled the news in an interview on Thursday with the outlet.
Aston Martin isn't the only brand looking to enter the EV segment. As Bloomberg points out, automotive supplier Magna International is currently in talks with Beijing Automotive Group.
China has become an attractive place for automakers, as the industry is moving towards electrified and battery-powered vehicles. "The market size determines everything," said Zhou Jincheng, an analyst at Fourin Inc., an automotive market research company. "To make sure they will continue to have a foothold in the market, they are willing to take out some of the profits from their traditional vehicles to invest in EVs, which may not be profitable until 2025 to 2030."
Aston Martin Looks To Share The Burden Of Making EVs
Bloomberg states that Aston Martin won't be making electrified vehicles for China. Instead, the British brand is looking to collaborate with another automaker to share its lightweight components and aerodynamic technologies. According to Palmer, Aston Martin is already holding talks with startups and established automakers.
While Aston Martin's decision to enter the Chinese market is one that other automakers have completed, the British brand is doing things a little different. As the outlet claims, Volkswagen will come out with its first EV made in China later this year thanks to an alliance with Anhui Jianghuai Automobile Group Corp. Ford on the other hand has partnered with Anhui Zotye Automobile Co. to make and sell electric vehicles in China.
Aston Martin has other plans. According to the outlet, the brand is currently considering Contemporary Amperex Technology Ltd. (CATL) as a list of battery suppliers for its first electric sports car, said Palmer. That vehicle could be the RapidE, but there hasn't been a lot of news on the vehicle for some time.
China, as the outlet points out, requires brands to form joint ventures with companies in the country, to be able to sell vehicles locally. Entering into a partnership, then, is Aston Martin's quickest way of getting to sell electric vehicles in the country. China, though, is pretty strict on how many licenses it hands out to companies. Bloomberg reports that only 15 licenses have been awarded to the production of new-energy vehicles so far.
With Aston Martin's rich heritage and upscale vehicles, we don't think the automaker will have a problem finding a company to partner with when it comes to selling electric vehicles in China.
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