Young Man Lotus L3 EV’s debut shows trend of zombie auto companies’ survival in hot alternative energy market

Shanghai March 27^th, 2017 Gasgoo-Jinhua’s first alternative energy vehicle exhibition was opened on March 17^th. As a Jinhua local company, Young Man Group was among the exhibitors. Apart from several BEV bus models and a light truck, the displayed Lotus L3 EV also attracts media’s attention. Pan Qingnian, Board Director of Young Man Group told media that, “Young Man Lotus will have a package plan to launch models including L3 EV. Other models are expected to make debut in the latter half of year.”

According to previous reports, Young Man Lotus stopped production since March, 2015. Now Young Man Lotus has begun its survival with the launching of L3 EV. It’s also learned that not only Young Man Lotus, many fringe auto companies are trying to recover in the hot alternative energy market.

Data shows that Young Man Lotus’s two main factories are located in Xiaoshan, Hangzhou and High-tech area of Jinan. The Xiaoshan factory has shut its door, while Jinan factory keeps some R&D team. L3 EV model is developed by Jinan team.

It’s estimated that there are several hundred auto companies in the market, but most of them have turned to be zombie companies just like Lotus. The alternative energy vehicle wave has provided opportunities for those fringe companies. Annual sales volume in alternative energy vehicle market has reached 75,000 units, 330,000 units and 500,000 units respectively in the year 2014, 2015, and 2016. It’s estimated the number would reach 800,000 units in 2017. Government also sets an annual target of 2m units in 2020.