Since 2023, China’s new energy vehicles have attracted the attention of the Middle East’s tycoons, and more and more Middle East capital and China’s new energy vehicle brands come to a collaboration.
Collaboration in the New Energy Vehicle Sector
On June 20th, NIO announced the signing of a shared subscription agreement with CYVN Holdings, an Abu Dhabi investment agency. According to the agreement, CYVN Holdings will make a total strategic investment of about $1.1 billion (7.896 billion CNY) to NIO through a private placement of new shares and the transfer of old shares.
Expanding Investment Horizons in the New Energy Vehicle Industry
In fact, the Middle East has been investing in the automotive industry for a long time. With the rapid development of new energy vehicles around the world, Middle East funds have also begun to shift to new energy vehicles, especially the enthusiasm for investment in China’s new energy vehicle companies, and investment efforts are also increasing.
Building Joint Ventures
In addition to the above-mentioned NIO automobile, Pony.ai, HiPhi, Xiaoopeng Automotive Technology, etc., have received the attention of Middle East capital, not only to buy a large number of shares, but also to build joint ventures to vigorously promote the local new energy industry.
According to statistics, more than 20 Chinese auto companies such as BYD, Chery, Changan and Geely have entered the Middle East market and achieved good results.
Driving Technology Exchange in the New Energy Vehicle
In addition to vehicle enterprises, Middle East capital investment in the upstream and downstream of China’s new energy vehicle industry chain is also becoming more and more common. In the upstream power battery, driverless and other fields, the Middle East capital in the domestic investment objects include Gotion High Tech Co. LTD, Tellus Power, etc.; investment targets in the downstream sales and travel fields include BAIC New energy, Didi Chuxing, etc.
By investing in Chinese auto companies and guiding them to invest and set up factories locally, Middle Eastern countries can also obtain advanced technologies from Chinese auto companies in areas such as electric vehicle technology and intelligent driving, and promote the development of local auto manufacturing industries. For Xiaopeng and NIO, which have only made equity investments so far, the possibility that Middle Eastern capital will put forward similar requirements for technological empowerments, industrial implementation, etc. in the future cannot be ruled out.
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