Sun Yat-sen, the father of modern China, once passed by the surging Qiantang River and was deeply moved by its mighty flow, seeing it as a metaphor for humanity's inexorable march forward. Inspired by the sight, he penned the famous line: “The tide of history flows forward. Those who ride its current thrive. Those who defy it perish.”
So too does business need to heed such flows. With new energy vehicles (NEVs) rapidly supplanting traditional automobiles, penetration for such cars in China rocketed from just 5.8% in 2020 to 44.4% last year, and is projected to climb further to 82% by 2029.
Recognizing that consequences loom for legacy automakers that move too slowly or refuse to adapt, industry stalwart Dongfeng Motor (0498.HK, 600006.SH) knows that resting on past laurels won't suffice. Its survival demands transformation. And in a dual-track maneuver responding to that challenge, parent Dongfeng Motor Corp is privatizing the Hong Kong-listed Dongfeng Motor while simultaneously spinning off and listing its Voyah Automotive Technology Co. Ltd. electric vehicle (EV) unit.