New Energy Vehicles in China

By+staff+reporter+LUO+YAO

NEW energy vehicles were once again the highlights of Auto China 2014， held at China International Exhibition Center in Beijing in late April. Over 2，000 enterprises from 14 countries participated， exhibiting a total of 1，134 vehicles. Among them， 118 models were shown for the first time， 79 of which used new energy. These new energy cars represented not only international brands but domestic products as well.

Many of Chinas new energy cars compare favorably with international competitors. BYDs brand-new hybrid SUV， Tang， can accelerate from 0 to 100km/hr in just 4.9 seconds. Cherys Arrizo7 can travel 50 kilometers on battery power， outperforming all similar vehicles.

The sudden greenness at Auto China is not just because of growing environmental awareness and the threat of energy shortages. A new platform of government incentives has also encouraged research and production of new energy vehicles.

New Incentives

As China chokes on haze， the fumes of industrial waste and vehicle exhaust are blamed for the smog in major cities. Faced with serious environmental problems， new energy vehicles have drawn even more attention.

“The attention is not only from society， but from the government，” said Zhang Guobao， former director-general of the National Energy Administration. As the worlds largest producer and consumer of automobiles， China has made new energy vehicles a priority for future development. New government in- centives demonstrate the governments determination to popularize new energy cars in China.

Beginning in 2001， China invested RMB 2 billion to research and develop electric， hybrid and fuel-cell powered cars. More than 3，000 scientists， representing over 200 auto companies and research institutions， participated directly in these research projects. As a result of their efforts， 160-plus new electric cars have entered production.

In early 2009， a project jointly led by several Chinese ministries was established to bring more new energy autos to public transportation. As of last January， 87 cities have participated， planning to put more than 330，000 green vehicles on the road.

As a pilot city， in 2011 Beijing established a lottery system for vehicle license plates to curb the influx of new cars. The city has gradually increased the license quota for new energy vehicles. It is expected that the number of licenses for new energy vehicles will rise to 20，000 in 2014， and reach 60，000 by 2016.

Governments at various levels have also offered subsidies to buyers of new energy vehicles. Those from the central government may reach RMB 60，000 depending on driving range， with parallel subsidies from local governments. Shanghais municipal government offers RMB 40，000 to electric car buyers and 30，000 for hybrids. Beijings subsidies match the national level； other urban centers including Guangzhou， Shenzhen， Chengdu and Zhengzhou have enacted similar policies.

Favorable policies have made China quickly develop into a vast market for new energy cars.

New Market Environment

Today， electric， hybrid and oil-gas-fueled buses and taxis are not new to major Chinese cities owing to the countrys promotion drive. These cities plan to further popularize new energy vehicles. By 2015， planners hope to have 83，000 new energy buses in Chinese cities， accounting for 13.8 percent of the total.

According to the China Association of Automobile Manufacturers， China sold 6，853 new energy vehicles in the first quarter of 2014， up 120 percent year on year. Of these 4，095 were electric cars and 2，758 hybrids. Dong Yang， an executive vice chairman of the association， expects 2014 to be a milestone for the development of new energy vehicles. Although they occupy a small niche， manufacturers have high hopes for clean energy vehicles. According to Elon Musk， founder of Tesla Motors， by 2015 Tesla electric car sales in China will match those in the U.S. Tesla currently expects to sell around 7，000 cars in China in 2014， and roughly 25，000 by 2015.

Overseas Exports

Although far behind other car-producing countries， Chinese manufacturers are sparing no effort to develop new energy cars and expand the market. As China catches up with the big players in this field， many domestically-owned brands have earned respect on the international market.

Tourists to the London Olympics cruised pleasantly along the Thames in environmentally friendly double-decker buses. Although they may not have known it， the buses were exported from Ankai， a major Chinese bus manufacturer. On March 29 another Chinese company， BYD， exported its electric buses to Rio de Janeiro， which will host the 2016 Olympics. As the worlds largest producer of electric buses， BYD exports to Belgium， the Netherlands， and many countries in Asia and the Americas. Beijings Foton Motors has supplied Germanys first electric buses， and Asiastar has exported clean energy coaches to Israel.

Improving Infrastructure

New energy cars mainly refer to those powered by fuel cells， hybrids， and electricity. Hybrid vehicles are regarded as a transitional product， with the thrust of future research directed towards electric and fuel cell powered cars.

Currently， further expansion of electric-powered car market is hampered by the difficulty of charging these cars. Chinese charging stations are still few and far between. However， China has achieved many breakthroughs with electric batteries. BYDs electric buses can run 250 kilometers on urban roads on a full charge， consuming only 1.2 kilowatt-hours per kilometer. Asiastars quick-charge battery takes the opposite strategy. While passengers get on or off the bus， the battery takes a ten-second charge – enough to drive two or three stops.

Because of the infrastructural requirements， each city must take responsibility for installing charging posts. Beijing plans to complete the construction of 1，000 public fast-charging posts in 2014， and Shanghai planned to invest RMB one billion by 2015 to build 5，000 electric car poles in parking lots. By 2015 Shenzhen plans to have 168 charging stations for buses， 50 for taxis， 526 fast-charging posts and 39，000 regular charging posts for the public.

Along with the rise of supporting measures and cost reductions， it is estimated that by 2020 clean energy vehicles will account for over 10 percent of Chinas car sales. The proportion of new energy vehicles is expected to rise significantly in China.