China is the 'only winner' in EV game - expert says

China is the “only winner” in the EV game, says Vivek Vaidya. He’s an associate partner at Frost & Sullivan.

Why does Vaidya see China as the victor?

Vaidya sees the largest Asian economy as a victor in electric vehicles as it has everything required to dominate that space – from raw materials, to infrastructure, to customers.

His comment arrives shortly after major EV players in China including Geely and BYD reported close to a 50% month-over-month decline in sales.

Still, Vaidya is convinced that China stands to dominate the electric vehicles market as it has the “entire value chain with them”.  

Note that late Charlie Munger also saw BYD well ahead of Tesla in China. Still, shares of the Shenzhen-headquartered firm are down about 30% versus their 52-week high.

Does it make sense for Europe to chase EVs?

On CNBC’s “Street Signs Asia”, Vivek Vaidya also said the world is not ready for EVs to replace all gas-powered vehicles just yet. The Frost & Sullivan expert is particularly against Europe chasing electric vehicles so much.

Note that EV stocks even including Tesla Inc have been doing rather poorly in recent months amidst a slowdown in demand related to factors like price, maintenance costs, and range anxiety.

Legacy automakers have, therefore, recently switched focus to hybrid vehicles instead.