On July 14, Bloomberg News reported that China is strongly committed to becoming the dominant force in the global electric vehicle (EV) market. To achieve this ambition, Chinese firms have been aggressively acquiring companies both domestically and internationally. The latest acquisition involves Japan’s EV startup GLM, which has caught the attention of a Hong Kong investment firm known as O Luxe Holdings.
When GLM faced financial challenges in funding the production of its high-end electric sports car following significant R&D investment, local Japanese investors were unable to provide the necessary capital. This week, however, GLM found a new investor in O Luxe Holdings, which agreed to purchase the company for 12.8 billion yen (approximately $113 million). O Luxe plans to finance this acquisition through the issuance of new shares, which will include Chinese electronics giant TCL among its shareholders. Following the completion of the deal, GLM’s founder and CEO, Hiroyasu Koma, expressed optimism about accessing global funding sources for future R&D initiatives under the new ownership.
Koma emphasized, “The acceptance of electric vehicles is growing rapidly worldwide, and China is leading this industry. Despite Japan’s technological edge remaining strong over the next five years, we aim to secure a solid position within this expanding market.â€
The Chinese government has consistently supported the new energy vehicle sector through substantial subsidies, driving domestic firms to acquire foreign EV and battery manufacturers like GLM to enhance their technical capabilities. O Luxe disclosed in a filing with the Hong Kong Stock Exchange that the acquisition presents a strategic entry point into the rapidly growing EV industry.
Since securing a new owner, GLM is set to begin production of its all-electric supercar, the G4, in the latter half of 2019. Priced at around 40 million yen, the G4 aims to produce a limited run of 1,000 units. Additionally, the company plans to develop electric minibuses and seven-seater models utilizing the refined G4 chassis and key electrical components.
Founded in 2010 by seven ex-engineers from major Japanese automakers like Toyota, GLM initially launched the Tommykaira ZZ, a lightweight two-door electric sports car priced at roughly 8 million yen. The vehicle, unveiled in Japan in 2014, reportedly sold fewer than 100 units.
Looking ahead, GLM intends to transition from vehicle manufacturing to offering customized engineering solutions and components, including chassis platforms, power systems, and control units, to other automakers—especially Chinese ones. Chairman Wang Jianfeng of Ningbo Junsheng Electronics noted earlier this year that Chinese automakers must adopt foreign engineering expertise to compete globally. Recently, Johns Electronic’s U.S. unit purchased bankrupt Japanese airbag manufacturer Takada for under $1.588 billion.
Prior to the GLM acquisition, Chinese enterprises had already made numerous investments in the global EV landscape. Over the last five years, auto parts manufacturer Wanxiang Group acquired Fisker Automotive’s Karma EV line and its battery supplier, A123 Systems. Jia Yueting, founder of LeTV, invested in California-based electric sports car maker Faraday Future, envisioning competition with Tesla. Reports suggest that GSR Capital, a Chinese private equity firm, is nearing a deal to buy Nissan’s automotive battery subsidiary, AESC, for approximately $1 billion.
According to the International Energy Agency (IEA), China now leads the world in electric vehicle sales, accounting for 40% of global EV sales. Government backing has sparked a surge in entrepreneurship and investment in this field, with around 200 Chinese companies currently developing approximately 4,000 EV models.
Koma stated that GLM aims to provide engineering solutions spanning from luxury sports cars to affordable mass-market vehicles, aiding these companies in saving time and resources. He remarked, “While Chinese EV startups may appear competitive, we view them as potential clients for our engineering platforms. Our goal is to become the Google of the automotive industry by offering operating systems to car manufacturers.â€
(Liu Spring)
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