Dahua Creates New Car Subsidiary as Current Electric Car Firm Struggles

By Charles Rollet, Published Mar 19, 2020, 08:31am EDT (Info+)

Dahua has started a new "intelligent" car subsidiary, even as its current electric vehicle startup struggles with lower-than-expected sales, negative media coverage, and a crashing PRC car market.

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Dahua's first move into electric cars was in 2015 when it founded Leap Motor, which has raised hundreds of millions of dollars ($290 million as we reported in December 2018 and an additional $51 million last August).

By starting another car company Dahua is investing more in this sector, despite its significant difference from video surveillance. In this note, we examine this move and what it means for Dahua, including:

  • Official Announcement
  • Intelligent Car Focus
  • Leap Motor Struggling With Sales
  • Finances Lead to Negative Coverage
  • Leap Motor's Other Problems
  • Broader Market Issues
  • Leap Motor No Response
  • Conclusion: Distraction For Dahua?

Official ************

** ******** **, *********** ** **************** ** *** ******* ** * new ******* ****** ******** ***** ********** Technology ******* (浙 江大华汽车技术有限公司).

*** ************* ******* ** $** ******* (150 ******* ***), **% ** ***** comes **** ***** ****** *** **% from**** *****- *****'********* ******** ******* *******. *** **** ** *** ******* is ***** ** * ***** *** firm *** ** ********** ****.

********** ******* ****** ******* *** ***** Automotive ********** **** **** * ******* on *** ***** ** *********: *** appointed ** ***** *** *** ** Leap *****.

Focused ** *********** ********

***** ********** ********** ** ***** ** help ***** ****** *** ***** *** and ************** *********, **** *** ************ listing * **** (*** *****) ***** of *********** *********:

******** *****: ********* ********, ********** ***********, technical **********, ********** ********, ********** ********, technology *********; ******** ***********; ********** ***** and *********** *************; ********** *** ***** wholesale; ********** ***** ******; ******* ********* Manufacturing (********* ******* ********* *************); ********* and ********** ********* *************; ******** ********, hardware *** ********** ********* *************; ******* equipment *** ********** ********* ************* [...]

Leap ***** ********** **** *****

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*****'* ******* ******** ******* *******, **** Motor, ** **********, ****** **** **** one-tenth ** *** **** ** ********* promised: ** ******** ****, **** ********* ** ********* **,*** ***** ** *** ******** car ***** (*** ***) ** ****, but ***** ****** ********** ***** **** *******-******** ****.

Finances **** ** ******** ***** ********

**** ******** $** ******* ** ***** versus $** ******* ** ****** ** 2019, *** *** ***** ********** **********************.** ** ***** ***** *** *******, Leap ** ******** ** **** ***** for ***** *** ** ** **** expected ** ******* ***** ****** ***** it ** ********** ** **.

*******, ****'* ********* ********* *** ****** in ******** ***** ******** **** ****, with *** *************** ********** **** *** "********* ******* ******", a ********* ********* **** ****** "** ***'* ***** ***** arbitrarily *** **** ******** *** ******."

**** ******* *****, **** ***** *** find *** ******** ******* ********* *** much ******** ***** **** *** **** and ******* ** **** **** ** raise **** ***** ****, * ********* concern *** *** *******-********* *** ******. (Leap ****'* ******* ** *** ******** for *******).

Shut ***** ** ****** ** *** ****

** ******** ****, ***** ***** *** **** **** ** the ****** ** *** ******* **-** ******* ***** * ****** tried ** ** * ******** ******* as ** *** *******. **** ***** claimed **** *** *** * ***********, as *** **** ****** ******* ******* while *******. ** **** ** *** case, **** ***** ****** *** **** allowed ** ** ** **** *********. Moreover, ******** **** *************** ** ******* ** ************ *** months ****** ** ******* ****, ****** Leap **** ** ******* *** **** a *********.

Depending ** *** ***** *************

*** **** ************* ******* *** **** Motor ** **** ** * ******** manufacturer,********** **,*********************** ********** ****** ** *** *** last **** **** ** ****** *****, resulting ******** *** *************** *** **** ****.**** ********** ***** ****,**** ***** **** **** ********** ***** be "******** ** *** *** ** August [****]". *****, ********* ** * third ***** *** ************* ** * risk.

'Awkward' ****** ********

**** ***** *** ** "*******" ****** position, *** *** *** **** *************, ******* **** *** *** ***** (pictured *****) ** ****** ***** (***** $15,000) *** *** **** ******** **** other ****é-***** ****, ***** *** ********* upmarket: "*** *** *** ** **** to ** * ***** ****é, ***** has ******* ******** *****".

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Broader ****** ******

***** *** **** ******* ****** **** Leap ***** ****** *******, *******:

  • *****'* *** ********* ******* **%*** ** *** ******* *********** ********, which *** **** *********** ******* *** prices, ******** *** ****** ** ******** vehicles.
  • *** *** *** *** * **** crowded ******** ** ****** ******** **** *** *****;*** **** ********* ********* ** *** that**% ** **** **** ** *****.
  • **** ****** *** ***********, *****'* ** companies **** ********* **** "*****" ****** and ******* ********** ***** ********** ********* were *******, ***** *******. *****'* ******* ** *****, ***,*** ***** *****.*% ** ****. ******* ***** ** manufacturer, ***, *** **** *** ***** plummet **** **% ***** ** ****** in **** ****; *** *** ** bad ****** ***** **** *** *** government*** ** **** ** ******* *** ***** ***.
  • *** **** **** ***** ******* ******* ********/******* **** ** *** PRC*** **** **** * ****** ** lesser-known ********.

**** **** *** **** **** ***** is ******, ** ** *** **** and *** ****** **** ******. *******, IPVM ***** *** **** **** ******** coverage ** *** ******* *** *** overall ******* *** *** ********/*********** ******** is *** **** *******.

Leap ***** ** ********

**** ***** *** *** ******* ** our ******** *** *******.

Conclusion: ******* ***** ***********?

**** ***** **** ****** ******* ******** as ***** ***** ******** ****** ** its *** ****** ** ***** ************, such ******* ****** ************ ********* ***** ****** ****.** ** ***** ****** **** *****'* CEO - *** *** ******** ** bring **** ********** ** *** ******* -*** **** **** ************ *****'* *******, ** ******, *** has **** * ******* ***** ****** Leap *****, ***** ******** **** **********.

**** *** ****** ******** ***** *****'* focus ** *** **** ******** **** unprecedented ************ **** ** **** *** abroad.

Comments (6)

how is this a distraction ? one company owns another company to diversify revenue streams.

it might be a foolish move, but unless they ask their camera salesmen to sell cars I dont see the problem here.

Elon musk owns a flailing car company and a space travel venture and is considered a role model , why cant dahua founder be one too?

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Elon musk owns a flailing car company and a space travel venture and is considered a role model , why cant dahua founder be one too?

Listen, when it works, a person who does this is a genius. When it fails, the person who does it is a fool. This pendulum swings with Musk regularly.

Take another one - Jack Dorsey with Twitter and Square, Dorsey regularly gets beat up for it, e.g. Jack Dorsey surrenders to the hedge fund | Revue

Mr. Fu can be a genius, a visionary, and Iron Man, etc. when it all works. It's clearly a high risk, high reward strategy.

Neither of us can be certain what will happen. In 3 years, let's come back to this - if Leap Motor is a major electric car company and Dahua is still growing, you're right, deal?

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when it comes to cars im not a dahua type of guy. if Hik started a car company I'd bet my money on them, much more disciplined and well organized than dahua.

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if Hik started a car company I'd bet my money on them, much more disciplined and well organized than dahua.

THAT'S WHY HIKVISION HAS NOT STARTED A CAR COMPANY! :)

In all seriousness, sources tell me that Hikvision execs find the Dahua car company to be laughable, though this probably is not totally surprising as there is clearly bad blood with the cross-town rivals.

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...a Leap Motor car shut down in the middle of the road for 10-20 minutes after a driver tried to do a software upgrade as he was driving. Leap Motor claimed this was not a malfunction, as its cars cannot perform updates while driving.

he was upgrading to just to get that feature ;)

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UPDATE: Chinese media report that Leap Motor sold 884 electric vehicles in July and 879 in June, which was a record high for single-month sales. These are good numbers for Leap - if they can keep it up, they may be on track to fulfilling their 2019 annual sales goal of 10,000 EVs.

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