January 08, 2025

China is missing out on opportunities for electric vehicle development?


The sports car shouted to increase policy support

Electric vehicles are considered to be a better choice for new energy vehicles in the future. China’s relevant authorities also seem to believe that, apart from being cleaner and more economical, electric vehicles will also create opportunities for Chinese emerging automobile companies to narrow down the gap between them and world-renowned car companies. Technology gaps and so on. However, at least from the current situation, China's electric vehicles are in a "flowering, inconclusive" situation, and it seems that they are missing opportunities for electric vehicles.

A few days ago, SAIC Chairman Hu Maoyuan, BYD Chairman Wang Chuanfu, and Renault-Nissan Co-CEO Ghoen both screamed and hoped that the Chinese government would increase support.

Electric vehicles develop slowly in China

Electric vehicles refer to new energy vehicles in the form of pure electric vehicles, hybrid vehicles, and fuel cells. As the cost of electric vehicles is too high and supporting facilities are not perfect, almost all domestic and regional areas provide subsidies and policy support for electric vehicles. The United States is currently the world’s largest electric vehicle sales nation and is also the most active country. On August 5 this year, US President Barack Obama announced an incentive subsidy program worth US$2.4 billion to accelerate the production of the US local electric vehicle industry. And R&D speed; Japan is in the leading position in the field of electric vehicles, and plans to achieve 110,000 fuel cell vehicles and 2.11 million hybrid electric vehicles in 2010; even in Europe, where traditionally it focuses on diesel vehicles, electric vehicles have also begun to develop.

In contrast, although the Chinese government promulgated the “Auto Industry Adjustment and Revitalization Plan”, it proposed that in the next three years China will have to build 500,000 new-energy autos, such as pure electric vehicles, rechargeable hybrids, and ordinary hybrid vehicles, and sales of new energy vehicles. It accounts for about 5% of the total passenger car sales, and has established a subsidy standard of 50,000-600,000 yuan for electric vehicles. Apart from the Olympics, some electric cars are put into operation, so far there is almost no electric car for individual consumers. The sales of the car in the market, even the most famous BYD F3DM electric double model car is no exception. The 32 models delivered this year are all industry users. No one is a private user. This is the status quo of domestic electric vehicle development.

Foreign media believe that it is not yet clear whether China’s central government is ready to introduce consumption incentives to promote the sales of electric vehicles. China seems to be missing opportunities for electric vehicles.

Officials from the automotive industry of the National Development and Reform Commission stated that some government officials are reservations about subsidies for electric vehicle sales, because the benefits of such subsidies or discounts may be mainly affluent private consumers.

Wang Chuanfu: Popularization of Electric Vehicle Policy

Seeing that the speed of electric vehicles is slow, the gap with foreign countries is widening, and domestic automakers are unable to sit still. SAIC, FAW, Dongfeng, Chang'an, GAC, BAIC, CNHTC, Brilliance, Chery, and JAC are the ten domestic vehicles. The company has jointly established the "Electric Vehicle Industry Alliance" in August in order to jointly tackle the difficulties encountered in the process of industrialization of energy-saving and new energy vehicles. The heads of auto manufacturers have come out recently and the government wants to Increase policy support.

SAIC chairman Hu Maoyuan publicly stated at the "2009 Clean Energy International Summit" held in November that there are almost no returns for the production of electric vehicles. There are two reasons. First, there is still a gap between battery technology and traditional car performance. This requires a gap. The technological upgrading problem is solved; secondly, the cost of lithium battery is much higher than that of traditional automobiles. There is a problem in the promotion of electric vehicles: when the cost of the battery is low, the electric car is produced again, or the cost is reduced after mass production. He said, “This is a chicken or egg problem. To solve this problem, we should first use electric vehicles in the areas of public finances such as buses and official vehicles.”

Wang Chuanfu, chairman of BYD, a leading company in the domestic electric vehicle industry, said that the popularity of such vehicles depends on these policies.

Renault-Nissan CEO Ghosn also hinted that the Chinese government's lack of incentives for private purchases of green cars is the reason why Nissan is evasive about producing electric cars in China.

View related topics: New energy vehicles: The magic weapon to deal with energy crisis


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