Gogoro will seek to crack the notoriously competitive Chinese automotive market before Nasdaq listing through a special-purpose acquisition company that will cost the electric scooter and battery replacement technology group $ 2.35 billion.
The launch of Gogoro’s technology in Hangzhou on Monday is a sign of the long-term attraction of the Chinese market, although investment and supply chains from China are declining as Beijing cracks down on influential domestic technical groups and foreign fundraising.
“It’s just a huge market. There are so many vehicles on the road, you have to get inside, ”Horace Luke, Goro’s founder and chief executive, told the Financial Times.
The arrival of the Taiwanese company in China also comes despite many challenges সহ including intellectual property theft, overcapacity and throat-cutting competition যা which have hampered the success of the country’s artisans, including Ford, Hyundai and Tesla.
Gogoro is not selling its scooters in China, the world’s largest two-wheeler market with m00m passengers on the road. Instead, it is installing battery switching technology in partnership with Yadiya, the largest manufacturer of two-wheeled electric vehicles, and Dachangjiang, China’s top seller of petrol-powered two-wheelers.
Chinese companies are releasing new scooter models that will work on Gogoro’s swapping network, starting with 0 stations in Hangzhou. The network allows operators to quickly replace expired batteries, which means they avoid charging their own scooters.
The joint venture model, Luke said, is comparable to the Chinese approach of Microsoft or chip designer MediaTek, whose platforms and underpinning technologies are licensed by local groups.
Luke Tesla also contradicted the plan, whose dominance in China has been challenged this year by attacks on domestic brands and state media. Instead of working with Chinese companies to compete against them, Gogoro believes it will be less likely to be a victim of IP theft and face competitive pressures that annoy other global carmakers.
“We used to believe in an ‘Android’ platform, we don’t believe in ‘Apple’ or ‘Tesla’ to do it,” Luke said, referring to Google’s smartphone operating system, which is available here. We focus solely on developing these partners and enabling them to use our platform. “
Gogoro’s entry into the Chinese market comes at a critical juncture for the company, backed by Singapore’s state-owned investment fund and Al Gore’s Generation Investment Management.
Luke, a former Microsoft executive, plans to raise ৫ 550 million in the first quarter of 2022 by merging the company with an empty check car.
Gogoro’s existing shareholders will hold about 50 percent of the shares after the listing, which is also supported by Apple makers Foxconn and Goto, the merged business of Gojek and Tokopedia, and Indonesia’s largest tech group.
“How many are in line? A lot,” Luke said of the time.
Tu Le, managing director of Sino Auto Insights, warned that China would be a “challenging” business environment for Gogoro and said it needed to build its battery replacement infrastructure “in the right place”.
Gogoro’s move also comes as the vast EV market is flowing. Sales of electric vehicles in China are a bright spot for the larger industry, which is surrounded by a shortage of chips and other components and a reduction in production from the threat of a power crisis.
However, factory overcapacity in China, a hangover of state subsidies year after year, has complicated the outlook for the local sector, surpassing China, as analysts fear that low-cost vehicles will be dumped in foreign markets.
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