FAW signs deal to acquire stake in Zhuoyu

Chinese auto maker FAW (First Automotive Works) (000800.SZ), signed a deal to buy into local driving assistance technology firm Zhuoyu, the country’s market regulator said on Monday in a notice seeking public comment on the investment through October 1.

FAW plans to acquire holdings now held by New Territory Technology Company. After the deal, FAW will take a 35.8 percent stake in Zhuoyu, while Hong Kong-based New Territory’s stake in Zhuoyu will drop to 34.85 percent from the current 70.65 percent.

FAW is a leading Chinese automobile manufacturer with a rich history dating back to 1953. It’s one of China’s oldest and largest automotive groups, producing quality passenger cars, trucks, and buses with annual sales exceeding three million units.

FAW was established on July 15, 1953, and has since become a major player in China’s automotive industry. FAW manufactures passenger cars, trucks (under the FAW Jiefang brand), and buses.

FAW exports vehicles to over 70 countries and has joint ventures with international companies like Volkswagen and Toyota.

According to another news, Chinese EV brand BYD Gains ground in Spain, challenging European giants. Cost-conscious buyers like Hernandez are fuelling rapid growth for Chinese EV carmakers like BYD in Spain and around Europe, stepping up competition with regional and U.S. rivals like Tesla, Stellantis, and Volkswagen.

“Until the arrival of BYD, if you wanted to buy an electric vehicle, you had to spend a hell of a lot of money,” BYD country manager for Spain and Portugal Alberto De Aza told Reuters.

BYD’s Spanish dealership network has nearly quadrupled to almost 100 dealers from 25 last year, De Aza said, accompanied by aggressive marketing and discounts.

Meanwhile, most established car brands have closed dealerships. Data from Faconauto shows legacy brands had 1,648 dealerships in 2024, down from 2,164 a decade ago. Volkswagen and Audi dealerships fell 40 percent in that period.

“Chinese competitors are increasing the pressure, and not just on us,” Markus Haupt, interim CEO of Volkswagen-owned SEAT told Reuters last week.