Shares of Chinese Electric Cars Jump Amid Speculations that Apple is Entering the Market

Published Date : Feb 16, 2015

Shares of companies related to electric vehicles have jumped in China, and are expected to further benefit amid speculations that Apple Corp. is planning to enter the industry of electric cars.  

BYD Co., a company that manufactures batteries for electric cars, observed a surge in its shares by a nearly 9.4 percent in the Hong Kong share exchange as of 1:17 p.m. NavInfo Co., a company that provides auto navigation systems for electric vehicles, saw a rise in its shares by a good 10 percent in the Shenzhen stock exchange, as shares poise for their biggest jump since the May of 2010. Ningbo Joyson Electronics Corp., a car-accessory maker observed a decent hike in its shares by 6.6 percent in the Shanghai stock exchange. The Hang Seng Index jumped up by 0.3 percent, while the CSI 300 Index observed a rise by 0.4 percent.

People familiar with Apple’s plans to enter the electric cars industry of said that Apple was in the process of developing an electric vehicle. The design of the speculated vehicle will that be of a minivan, and that Apple executives have flown to Austria for meeting contract manufacturers for high end cars, added the people familiar with the matter.

It is also being speculated that BYD Co. may collaborate with Apple Inc. for certain kinds of parts of cars. The market is also hoping that Apple will invest in companies like NavInfo for enhancing the speculated electric vehicle. 

Spokesperson of BYD Co., a company that is backed by Warren Buffett’s Berkshire Hathaway Inc.,
stated that the company does not know what had prompted the recent decline in the company’s shares to a record low in December, and dismissed the rumors that its chairman was arrested in China.