A Way To Play Electric Vehicle Growth In China

Filed under: Industry, Competitive Strategy

The Chinese automobile market has been rapidly growing, and the growth of the auto modified plastic space is growing at an even faster rate. Between 2005 and 2009, automobile production volume has gone from 5.7 million to 13.8 million, which implies a CAGR of 25%, and the growth of this sector's sales volume has an estimated CAGR of 27%. One company which benefits from these trends is China XD Plastics Co. (CXDC).



On July 21st, the company signed an exclusive product development agreement with Hafei Dongyang, which is one of the leading automotive parts suppliers in Northeast China, to deliver 3 tons of specialized plastic compounds. These compounds will be used in the battery casing during a pilot production for electric vehicles. According to the press release, China XD Plastics will have the opportunity to receive additional exclusive product development rights for a period of five years upon the successful design of new specialized plastic products to be used in HD's plastics parts in electric vehicles.

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A Way To Play Electric Vehicle Growth In China originally appeared on BloggingStocks on Mon, 26 Jul 2010 16:40:00 EST. Please see our terms for use of feeds.

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ElectricVehicle - China - Automobile - Northeast China - BloggingStocks

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