ABB buys majority stake in Chinese EV charging company

ZURICH -- Swiss engineering giant ABB, aiming to add scale in e-mobility services, has bought a majority stake in Shanghai Chargedot New Energy Technology Co., a Chinese electric vehicle charging company.

Chargedot, which employs 185 people, makes charging stations and software platforms to enable vehicles to be charged with electricity.

ABB, which has installed an electric vehicle charging network in Singapore and across the Netherlands, has bought a 67 percent stake in Chargedot with an option to increase the holding. The price of the acquisition was not disclosed.

The acquisition, the first under CEO Peter Voser, is intended to boost ABB's presence in the fast-growing Chinese EV market, and strengthen the company's relations with makers of electrically powered trucks and cars.

China has an EV fleet of 2 million vehicles -- the largest in the world -- ABB said, with consumers supported by government incentives and concerns about air pollution.

EV sales in China grew by 52 percent in the first half of 2019, according to the Center of Automotive Management with the market dominated by local manufacturers such as Chery Automotive, Geely and BYD.

ABB has been working with BYD and Daimler in China on electric vehicle charging infrastructure, while Chargedot has been working with car manufacturer SAIC.

"Chargedot was one of the first high-tech enterprises in China to focus on new energy vehicle charging solutions. By joining with ABB, we will be positioned strongly to make the next big leap forward," said Mao Chunhua, CEO of Chargedot in a statement.