Key Takeaways:
Dongfeng plans to list its Voyah NEV unit, which turned profitable in the first seven months of this year from a year-ago loss
The brand sold 80,000 vehicles in the first eight months of this year, matching its total for all of last year
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.
Voyah has its roots in the 2018 "Dongfeng Project 56," launched when state-owned Dongfeng Motor foresaw the industry pivot towards NEVs. Formally established in 2021, Voyah says its name, which is a homophone for ‘Blueprint' in Chinese, symbolizes its ambitious planning and a bright future.
Capitalizing on tailwinds
Voyah has leveraged Dongfeng's 56 years of manufacturing heritage and deep resources to rapidly advance despite its relatively late arrival to China's NEV race. The company has launched four models within ...
