welcome i'm terry kramer faculty director of
the ucla anderson easton technology management center and i want to welcome you to day two
of the wu greater china business conference and as all of you know we had our first day on
tuesday evening pacific time wednesday morning in the greater china area two great sessions we
had on that first day we had jennifer zeus scott she talked all about how ubiquitous ai is she
talked about the power of data she talked about web 3.0 the decentralized internet and more of a
focus on empowering individuals to manage their own data we also had a second session that was on
the future of e-commerce and a fascinating look once again at the role of data that can ultimately
provide for predictive shipments it can provide for better design of products can provide for
better production of products to eliminate waste and it's now my pleasure to talk about
today's session and today's session is going to be focused on the future of transportation
and the future of finance specifically there are three goals for our sessions number
one is to understand the most promising areas of innovation in both transportation and
financial services and innovations not just in products and services but also in business models
second goal is to understand the unique context and enablers in the greater china region
that have allowed these innovations to occur third goal is to get a better understanding of
the types of winners in this area large companies small entrepreneurial ventures unique approaches
etc in our first session panelists are going to explain the mobility sector and how that's going
to become ground zero for a convergence of players and a formation of an ecosystem that
includes hardware and software providers municipalities and broader government creating
the opportunity and also uncertainty for electric vehicles for autonomous vehicles from
players and components all the way to players that provide full mobility service uh provision
the second session that we're going to have is going to focus on the future financial services
in the region and the ongoing transformation of fintech in areas including blockchain and
the role of sustainability in investments now our first session is going to be moderated by
terry mccarthy terry is the ceo of the american society of cinematographers former president
and ceo of the los angeles world affairs council now known as the los angeles world affairs affairs
council and town hall a supporting organization for this week's conference terry spent more
than 30 years with experience in journalism television print media and non-profit management
he's traveled throughout the us europe asia and latin america as a reporter covering political
military and societal issues in the first session we'll hear how china's become a global leader in
smart cities and over the decade with targeted technological innovation has developed smart
city infrastructure and invested significantly in the digital transformation of its cities from
clean driving to driverless taxis and trucks elect electric vehicles of all types autonomous vehicles
all of that will change the nature of on-road driving and in the process revolutionize
the automotive and mobility industries for all of our sessions as you know we'll have
time for audience questions please pose your questions via the slido tool that is embedded in
the bottom of your screen you can either enter in your own question or upvote one of the existing
questions a big welcome to all of our panelists and let me now turn it over to terry thank you
terry and pleasure to be here with such an august panel um maybe i'll start by really briefly
introducing our panelists and we have stella lee who's the executive vice president of byd company
and the president of byd motors in north america and she joined byd in 1996 and opened byd's
first office outside of china in that year and then proceeded to open offices
across europe and north america and she now oversees all of byd's work
outside business outside of outside of china and then we have fun who's the founder and
executive director of the innovation center for energy and transportation which is
based in both california and beijing um and that is aimed at being a world-class
think tank to accelerate transitions to zero emission mobility and the clean engine energy
future and prior to uh founding icet dr anne served in various capacities for the u.s agency
of international development the us department of energy as their lawrence berkeley national
laboratory um and the university of california and finally um i'm delighted to welcome bill
russo who is joining us from shanghai and even though this conference is all about
mobility there isn't a lot of mobility in shanghai at the moment because bill is locked
in like most other citizens in that great city um he uh is the founder and ceo of automobility
auto mobility limited a strategy investment advisory firm and helping its clients create
the future of mobility and he's also serving as the chair of the automotive company committee
at the american chamber of commerce in shanghai and has been in the auto automobile industry 40
years including 18 years living in china so um i think we have a an extraordinarily um talented and
broadly based panel here i'm going to to briefly set up very briefly set up our conversation and
of course climate change hangs over a lot of of what is going on now with with next generation
vehicles um there are some pretty shocking statistics i don't have to go into all of them but
just let me say um in terms of of auto emissions uh you know just the cars in the united states
alone generate about 1.5 million billion with a b metric tons of co2 per year and that amount is
about the same from china a little bit less 1.2 billion metric tons um of co2 from china so both
countries producing an awful amount of of uh of co2 and i think that globally um emissions from
from vehicles account for more than quarter of all of our greenhouse gases so this is a serious
issue so of course there's a lot of work being done on on other types of of mobility um electric
vehicles of course are the most most well known um china has put a lot of money into electric
vehicles and we have our own um elon musk leading the charge here but we're still the thin end
of the wedge electric vehicles only account for uh about less than one percent of total cars
registered in the united states and in china it's only is less than 2.5 percent so um the growth is
coming but it's it's starting from very low base i thought we might we might start with
that because that's a question that sort of uh links both the united states and china and
maybe on you'd like to start with this question um where do you see this market going and how
quickly can it grow um we have some technologies but there's some resistance um how do you
see the development of of the ev market both in china and in the united states and are they
dramatically different models yeah i think the ev market go up very rapidly uh you know in the last
three four five years i in the evsl in china uh last year uh reached over three upon five million
units a lot of people predict you know the ub sale in china alone uh we are close to three million
units uh by end of this year so this is a huge growth and i think china is leading the way uh
for the deployment and department of eb markets uh i think china started this eb program right
after the financial crisis uh in 2009 you know the eb is part of the pillar industry so in less
than about 10 years of time i think you know uh china really uh leapfrog uh you know as a
major driver for the e-market but uh but if you uh survey the rest of the other parts of the
world like europe i think they are catching up very rapidly i think the in some of the european
countries there are kind of efficient new cell ev sales actually surpass china in terms of you
know the percentage sales and uh and the u.s has california said the very aggressive ev targets
like california wants to by 2035 100 of the new car sale contract will be hundred percent of
your ebays and the the administration applies 575 actually china does not have clear you know
targets for the following market so actually it's possible you know you've tried to uh stop
you know to the trends of uh you know uh racket uh scaling up i think you know uh and the u.s
and the uh europe can catch us you must surpass uh china in terms of the kind of efficiency but i
think uh in the shade of volume kind of still that is gonna be a global leader yeah thank you um
bill paint if you would for us a picture of what the ev market looks like in china you know we
have a lot of people probably watching this panel who haven't been to china certainly not in the
last couple of years because of covet um and a lot has changed in in in the last few years um in
terms of of automobile sales in china what is it what does it look like on the streets well
in shanghai and and other cities and also can you tell us why people are buying
evs in china because in the united states i think the climate change um mandate seems fairly
strong you know we keep talking about reducing greenhouse gases is it the same motivator
in china or the other market forces at play well you you have to uh first of all to go back to
your first point on on urbanization and pollution and the impact of transportation uh if you want i
i can tell you anecdotally from having been locked down for seven days in the city being locked down
for the better part of a week i've seen more blue sky in shanghai than i've seen in the nine years
that i've lived here uh if there's a definite link between human activity when you stop human
activity the environment gets instantly better right so transportation and human mobility
contribute vastly to the environmental problem that we have now what's different about
china what's different about china is that much like california it was a
heavy dose of of intervention and um i'd say in the in the midstream and
upstream investments in the development of the electric vehicle supply chain and manufacturing
capacity uh understanding that energy security uh for the nation was a priority and
that an industry like uh automotive where the core intellectual property of that
industry is tied to the internal combustion engine china was always a dependent nation when it
came to both energy resources as well as the intellectual property for the core asset of the
mobility device itself so the electrification push and there was definitely a push as [ __ ] alluded
to since 2009 with promoting eb as a national priority and having it part of the five-year
plan dating back to the 863 program even before right right really at the turn of the century
recognizing that this was going to be a key to the industrialization of china and to
the economic development it was recognizing that mobility stands at the core of economic
development and that the intellectual property of how we build and supply mobility devices
is going to be an accelerator for forward economic development it's understanding in the
historical context that mobility innovation is at the core of economic development putting
enough incentives into the market to get in manufacturers to experiment with the technology
to build out the capability to produce evs that was at the inception but it was never a market
driven development until 2020 until june of 2020 with the uh launch of the tesla gigafactory in
shanghai the market shifted from a push to more of a demand pull economy where retail consumers were
now shopping for evs and the beneficiary of that isn't just tesla it's all of the eb manufacturing
companies byd we'll hear from stella uh you broke the barrier of selling a hundred
000 units in march congratulations uh you know clearly the market leader uh but now we're
starting to see this shift of consumer interest in the product category but it is not and
i will emphasize this it is not driven by environmental it's driven by technology
the coolness of being uh in an ev and the affordability of evs i think that's what
the westminster that china got is not targeting the premium market with the electrification
products but targeting the mass market i think that's really one of the core differences yeah
you mentioned that last time we spoke the entry price for an ev is is remarkably low um you can
get cars for well under ten thousand dollars u.s yeah the willing hong kong mini v has been
a best-selling vehicle it's uh built by saic's joint venture with general motors uh the cherry
qq ice cream is also somewhere in the five to ten thousand dollar range and i think the byd
dolphin is also a very affordable ev that's not the only thing you can get you can get you know
mid priced and high and more premium evs from even from chinese companies today but targeting
the mid market at a price point with an affordable uh bill of materials cost i think that's really
what differentiates the china ev development so electric vehicles really what we're talking
about apart from a chassis and some seats is a battery that's what makes these things work
and i guess it's the the first thing you have to get used to when you get an electric car used
having been used to driving uh internal combustion engine is there isn't a lot else in the car right
it's just a big battery with the drive mechanism um stella the development of the battery industry
is clearly going to be key and there are a number of issues that have yet to be solved and i wonder
how you see the battery industry developing and do you think that some of the key advances will
come from china or from the west or both and you have an interesting perspective because you almost
have one foot in both both markets because you're based here but working with chinese companies
so how do you see the development of the battery market going so in the next several years the
the battery industry is is about the question about the buildup capacity so the industry in
next three years the industry already chosen one is ncm cell and another trend is lfp sales so
this this two chemistry one lead industry now the industry is more frustrating about the shortage
of elysium supplier and then the price inflation i get too high and then all the supply
chains price is too high so then with the eevee markets i want to add some point to your
question one the big difference in in china the eva penetration is around the 20 in europe is
22 but in uis is only 7 by this year's number but last year number is less than 5 so there's a
big difference here and also second difference is like it for the fleet in u.s market we're talking
about the car tesla is the the only companies has like the model can supply the volume other
company introduced model but they cannot deliver the volume yet but then chinese markets also focus
on fleet this fleet including the buses and also trucks and then all the taxi so this this portion
you will see that the center uh city of shenzhen all the taxis electric vehicle all the bus is
electric vehicle and then maybe next two years all the trucks running on the city will be electric
vehicle so we did then this same thing happened in hanzo in xi'an in different cities but we did not
see in u.s the fleet has been heavily electrified yet so i think that's the huge difference because
the fleet when you do electrification on the fleet naturally you will build up the charging
infrastructure to support the charging then this will give the foundation for the people to
build more charger for the their passenger car so then you you automatically solve
this training infrastructure issue as regarding the battery technology uh a lot
of people talking about the state solid cells and then that is for r d and then it still
takes some timing to be commercialized and also as today i think like a bill
mentioned byd car byd also introduced ebay luxury model in china so the next hand
ev we have is already promoting 650 kilometers range per charge and then this because
chemistry is lfp so with our blade cell frp so give your energy density but they also give you
the uh like a safety of the cell so i would say the battery technology next several years uh will
continue maybe pushing for higher energy density but the same times the whole car design will be
more optimized and then to make the vehicle has even similar cells similar pack but it can drive
a much longer distance so our first like a high ev introduced to the market the uh driving range is
around the 400 kilometer but then the for the next one the driver range will go to 650 kilometers
per charge so that's the direction it's going now and china versus the rest of the world in terms
of battery advancement technology development um you will see like in the battery supply chain
you're talking about the ncm maybe family and the lp family so china is many they jump from ncm
cell now switch to lfp because of the safety issue and then if you see oversea still
a lot of people is using uh ncm cells so then uh not too much focus on lfp yet
so maybe the industry was shipped later one of the remarkable statistics that ucla so
kindly dug up for me as i was preparing for this is the amount of time the cars are
not used so i guess in um in the u.s about 80 percent of of um all trips are made by by
personal vehicles in china it's it's closer to 60 but these private vehicles spend 95 percent of
their life in a garage not being driven at all and which raises the whole issue of public
transport and i'd i'd like to actually get a quick response from all three of our panelists
on on where we see public transport going it's something that's i guess the government has more
of a role in in sort of mandating electrification and we've seen that happen in various places
around the united states school bus and so on and where where does that go in the future
um and then we can sort of develop that also into smart cities but um i don't know
phenomenon would you like to start on that and um yeah um i think uh you know stella said you
know the free vehicle you know a development is very important you know i think what's the risk
striking uh in china other electric fitness starts from buses you know if you go back to 2009 the
stock of 10 city southern vehicles that started a piloting program for electric buses now five years
ago 2017 you know the champion are all electric buses in general achieve 100 electricity
electrified so fortune alone there's more than 40 thousand electric deposits i think for the entire
united states last year it's about three or four thousands so for city center city alone there's
ten times so i think that you know i i know the uh the the u.s want to catch up want to electrify
i think to electrify buses are the really uh very important i think it's the most things that the
government can can push for because that will drive the demands for battery uh demands for the
infrastructure development i think that's going to be uh be a pretty uh you know uh strong uh push
for uh for electrifying transportation so i would say that would be the key i think of in terms of
autonomous vehicles i think there is a certain you know i think this will start from buses
i think for personal transportation it's much more challenging to have a fully uh you know
self-driving autonomous vehicle freeze especially in big cities like china now i think u.s will be
the first to enable the you know the autonomous vehicle like a robot tax uh in terms of personal
transportation but i think china will need to have autonomous uh electric buses uh
system on the road that's my prediction now stella you're you're making large numbers
of buses in the united states how do you see it um progressing that market i see like a it's very
hard to convince people to give up a car to take the bus operation in u.s because the bus system
is not advanced modern lucky in europe in europe most of people are taking like the buses and the
tram and also subway but not in u.s this is a is a who take a bus is unsafe middle class
will never go to the taking the business so that's a brand problem here so actually in u.s
the infrastructures need is more advanced uh solution other some like a sky rail like we are
introducing now is a like a more modern and then more quiet more high-end you go there you
feel like a different and then uh also like the the the once you build it out build up
this one then the people maybe will be willing to take more public transportation so i would
say in china because of the traffic issue and then the the nature of the people like it
really enjoy the buses and also subway so more people will maybe start to move away from
their car to take or maybe uber dd in china is and then also uh like a the the uh like a
public transportation so u.s need change a lot to attract people to take public transportation so
this is the reason okay by the administration pass 1.3 trillion infrastructure fund to rebuild
public infrastructure here in u.s and also for the uh you mentioned very good pressure is a very
interesting model for electrification if your car you buy ninety percent you park in the
garage you don't drive and then now with the new technology like a v2 v2g v2l so if it's ev
you can actually trade electricity while you you are like a talking near idle so you can make some
income maybe this income can be big enough outside your lease payment for the car so that is some
kind of a value add solution for electric vehicle bill you you've spent 40 years in the automobile
industry and you surely know better than than anyone how much particularly in the united
states people's identities are defined by the car you drive right and that's what advertising of of
different car models is targeted at you know you you have a certain character type you drive
certain car and so on so forth but i'm curious to to to ask your view if we if we develop more
along the models that we're heading towards and i think mobility as a service is the sort
of the the uh uh the in way to describe that you you have to reset the the the whole model
of this that you're not you're not so much identifying with you're a ford mustang driver
or you're a whatever it is a porsche driver or a prius driver that you're somebody who needs to
get from point a to point b and do certain things and there are certain ways that you can do that
with certain financial you know you pay more for a an uber than you pay for a subway whatever so
on um i'm wondering how you see that developing and particularly in china and and to what extent
that would require government intervention on how much of that comes from the market and how this
all plays out because it seems like there are a lot of different directions this could all go yeah
well the first thing you have to do is it's it's not conflate ownership and in usership because
they're two different use cases that the same person can make different choices so we
tend to look at people and say okay are they going to buy a car are they going to book a a
ride and the fact is everyone does both the fact is everyone does both uh mobility context in china
is vastly different than in the u.s or in the west far more people ride than drive even if they
own cars uh people tend to have short distance commuter patterns and most miles that are traveled
are traveled in commuting short distances so we're not talking about urban to suburban that's not the
normal some people do it if they like to spend an hour in traffic they do it most people drive
short distances in cities the economic engine of development of china has been urbanization you
know this is a population that was 20 urbanized in 1980 it's 65 percent urbanized today people have
moved to cities to accumulate uh better lifestyles better better uh you know afford you know more
upgrade their lifestyle but as they move to cities cities have become more congested um which is uh
in the world of dense urban populations commuting in a cell phone vehicle is a pain point doesn't
mean you wouldn't buy a car but you're not going to buy a car to take it to and from work
i'm going to drag hardware around with you you're more likely even if you have a car to
book a ride to get to and from work or to have a driver so you don't have to deal with parking you
have to deal with all the associated pain points associated with that so making shared mobility
convenient and democratized through the power of the internet is what makes markets like china
very special uh we it was it was pretty good in your in your video the qr code society we don't
we don't transact business in cash it's painless you know frictionless you know pay for the ride
book a ride very very common behavior in china in fact didi uh before the pandemic uh i think
it's still true today most of the miles traveled in electric vehicles in china is the
dominant player is didi uh because their cars move all the time and they have a high
penetration of electric vehicles in the fleet um so when you think of the the commercialization
of technology shared mobility came first intelligent connected vehicles are now the the
standard right the cars have to be connected to the transportation system and to the users that
orchestrate the uh the platforms for mobility electrification makes sense in shared
mobility why because it drives down the cost of operation of the vehicle it's easier
to maintain lower fuel costs and autonomous driving will eventually reduce the driver
cost so the power of the internet and its algorithmic ability to precisely match mobility
demand with the supply of mobility devices is the key disruption and has been the accelerator
for the exponential growth of these technologies bill just one more follow-up and then i'm going to
go to the other panelists from the same topic so when you arrived in china 18 years ago the model
was you know you had foreign car companies you know the volkswagens and the gms manufacturing in
china and china learning from that and starting to build its own car manufacturers and yet we still
have not seen really any significant export of chinese cars to certainly the united states i mean
buses that's what stella does but the cars know um i'm wondering how you see the electric vehicle
market developing are we going to see a flood of these uh vehicles that are being made in china
coming to the united states no does tesla work out how to crack the chinese market um and and how
is that going to play out in you will see you will see chinese components embedded in vehicles
that are sold in the united states first i mean you're probably already seeing that a little
bit with tesla today they buy a lot of batteries lfp batteries they didn't they
did nmc as as was said earlier by stella uh but in china they they pivoted to
lithium iron phosphate to be competitive on price uh you'll see more and more uh companies
making evs with supply chain relationships with companies in china uh the vehicles
the vehicles will go to europe first there's already active uh sourcing of chinese evs
to the european market uh targeting mainly rental fleets and those types of use cases they'll also
be dealerships that will want to have access to good quality evs that are coming from uh places
like china uh neo byd uh you know xiaopong already making their their approaches
interestingly the one asian country uh that has made it's put its flag in the ground
about a week ago it was announced by joe biden in north carolina the the company called vin
fast uh from vietnam uh will be building electric vehicles in the united states so don't think it
won't come it just may not come first from china i think china will pivot to europe first for reasons
that i think are obvious geopolitical reasons that's interesting um you have some views on
this too i know since we talked about this before me your father u.s to to sell about
chinese to sell cars well on the on the the the sort of the competition between
chinese evs and us evs particularly tesla yeah i i i think you know the you
know the i think the pressure for the domestic market in china is so severe i
think all the you know right now the you know the evening makers intern in china probably
dominates like byd you know also tesla that's a group of kind of smaller upcoming startups so
the company i think those most of this company just trying to survive the chinese market i don't
think they actually have serious effort to export because they need to establish itself people to
be stable to be done to be survival and uh but i i think from technology front i think tesla is
still the leader uh you know because it's very in terms of their manufacture ability and their uh
margins of profitability i think it's very hard they have something like early lead advantage i
think it's very hard to to beat tesla in terms of you know the profitability it's very similar
to like apple case so you could have a lot of a cell phone company right so uh competing with
apple but apple's market is so much bigger than the rest of the you know uh you know uh
competitors so that's why their valuation is so much higher i think that's going to be
uh what the future evening market will look like i think the tesla may not be no it's
a it's a leader clearly is a uh you know in terms of share value but as a gm for all these
uh traditional automakers start to put ebs i think uh their volume will start to catch up but i think
they cannot match uh the marketing and innovation you know of tesla because tyler is always like
a half step ahead of everyone else so i want to see the ui is actually a higher advantage in
the uv uh manufacturers uh you know so i think the the conception that the u.s is losing the
battle you know i think it's a is a misplaced because tesla is clear winner i think unlike
the bill said that the reason that you know the the tesla the success in the marketplace it
really uh energized the whole chinese uh you know domestic indigenous uh uh makers ebay maker before
because there's a period of time you know the ebay has really a struggle and all you've been saying
and how you know the tesla you know uh you know to financially become successful then you know other
ev makers in china receive a huge uh financial support you know like neo and chopin you know
all that you know because people see what tesla can achieve so they have competence the investors
from government from primary capital start to pour you know that into you know those competitors so
i would say that actually tesla you know really uh release the charge in that guard so stella i'm
i'm getting a whole bunch of questions in from the audience and i'm going to turn to you because
you're um a lot of questions are are heading your direction and there's a couple here um traditional
ice carves average life is 15 years or so with a battery life of eight years do you think there
will be more turnaround when we move to a hundred percent electric vehicles um and then there's
a second question which is about ev battery demand on minerals are there sufficient accessible
minerals and materials to meet the demand for ev batteries in china and the us over the next
five to ten years so what about the battery life versus the life span of the car and um
how about the components for those batteries so all are very good questions so actually
for current technology fp is showing up the advantage is they have a longer left turn
so in the in our lab we do like a this one c charge once it is charged finish on the pack level
is 10 000 cycles that means without the consider you you lost some range there then
the battery can last for 30 years so when we design the ev our destinations design
the batteries as long uh the battery life cycle is a lot as long as the request itself so even to
retire from the buses from the trucks from the consumer car we can repurpose put into the
battery storage so that's our destination so by that reason if there's some company using
cobalt based like a battery you get a higher energy density maybe you got a last week you got a
longer driving distance but the province the okay nico cobo the content is the world cup limit
so our opinion speech in the very beginning is always like a we should for you for massive
like a 100 transaction to the ev the lfp sales is the is the best solution because you can gather
even today maybe listen carbonate price is higher in the history okay but then this is just because
in the short term the supply chain have a shortage then you have to allow the middleman to produ to
do the work here then the industry is supplying the like a 10 shortage in large amplified to
30 shortage but then this will be smooth lines once the industry rebalance in next
three years to be more focused on the lucky the supplier the cost of a
listing coupling will be smoothlies and then to be stabilized and then in the earth
there are two like a metal is a rich resource one is iron the second one is lithium so
you can gather even lesions from the ocean so you just in the next 10 years with all the
refunding technology improved then the cost to get the vcr will be also reduced then you
have a lot of like a place you can get it into um there's another question let me just add it to
you stella and then i'll move on to the to some others for the other members but the question
about battery disposal sort of the other end of this cycle and you've said that you can make
the battery suit the age of the car 15 whatever plus years um but what about techniques for for
disposal of batteries and so actually yeah so now for battery like a disposal and also recycling
now it's become valuable business so the a lot of companies even for byd we we will want like the uh
we give you a longer warranty term but we want it on the battery so by the end of the life you just
send the battery back to us we will do recycling when you do recycling you will get the recycled
elisium aluminum out from this uh like a used battery so in the future all today like a um like
it the abandoned batteries become the value now so a lot of companies fighting for that want
to do recycling business okay thank you so um here's a question for um maybe bill china has
set a target for new energy vehicles to make up 20 of new car sales by 2025.
Do you think the
chinese government will increase this target i suppose increase that number percentage-wise um
beyond 2025. well when when they hit it in 2023 it's going to need an adjustment we're going
to already had months where we've approached 20 uh in in 2021 uh i think across the
board it was 13 percent for the year uh and uh yeah it's it's definitely gonna we're
going to surpass you know barring any uh reversal of trend which is unlikely
right because the market's scaling more and more entrance the global automotive
industry uh having worked in it for a long time and having managed capital investment plans
you can it's too capital intensive to bet on two horses in this race you've got to decide one
or the other and you what you're seeing is a massive shift of the global automakers toward
the electrification uh you know when the when the japanese finally threw their hat in and said we're
gonna go into the ev that said get better bets are off right they were holding on to conventional
hybrids and ice assisted propulsion on the hopes that maybe fuel cell would replace battery
electric vehicle it clearly fuel cell is you know too far down the road to even imagine it being
in the strike zone of the capital investment plan uh so bev is the game everyone's going to play
the question really isn't whether it's going to hit 20 percent question is how high will it go
and how quickly we get there and who gets to share that pie the foreign oems in china you talked
earlier about you know foreign oems opening the market they have for the longest time dominated
the the automotive industry in terms of market share um i when i first came here it was all it
was 2004 and it was pretty much you know a very small slice for the chinese it was pretty much all
of the sino-foreign jb's selling all the products uh today automotive sales about 60 of
the market goes to the foreign brands 40 to the chinese brands in the ev segment
it's 80 to the chinese local brands 80 the other 20 is pretty much tesla and
everyone else everyone else is other in china right now but the but they're all now
committed because they can't lose china right but they're late and the chinese have the early mover
advantage in terms of the electrification trend so terry i like to add to this one we're in the
car industry we know the market very well actually at the ebay penetration in last year is 20 it's 19
in 20 percent but our ebay is including uh like a plug-in hybrid and also ev and then by this year
in the figure of march like a byd delivered like 100 000 so then we are one of the leading
companies in china and then like a by monthly number is march the china ebay market already uh
be more than 30 percent so this is 30 in also this year the comparing with last year the difference
the pure bev ratio is increasing before the 50 to 50 now is almost 70 to 30.
