Oil going out of fashion
“The implementation of the ban for such a big market like China can be later than 2040,” said Liu Zhijia, an assistant general manager at Chery Automobile Co., the country’s biggest passenger car exporter that unveiled a new line for upscale battery-powered and plug-in hybrid models at the Frankfurt motor show last week. “That will leave plenty of time for everyone to prepare.”
While many global manufacturers, from billionaire Elon Musk’s Tesla Inc. to Nissan Motor Co. and General Motors Co. are racing to grab a slice of the electric-vehicle market in China, it is the local manufacturers that have found considerable success, thanks to generous government subsidies.
Warren Buffett-backed BYD led the pack in sales in the first seven months of this year, delivering 46,855 electric and plug-in hybrid vehicles, according to the China Passenger Car Association. Beijing Electric Vehicle, the EV division of state-owned BAIC Motor, followed with 36,084 units. In comparison, General Motors has sold 738 cars run on electricity since it launched the Velite 5 plug-in hybrid model at the Shanghai auto show this April. That is 0.04 percent of its 2.1 million vehicles sold in total in China during the seven months.
Besides subsidies that also are aimed at meeting the strategic goal of cutting expensive oil imports, the government plans to require automakers to earn enough credits or buy them from competitors with a surplus, under a new cap-and-trade program for fuel economy and emissions.
Honda Motor Co. will bring its electric car for the China market in 2018, China Chief Operating Officer, Yasuhide Mizuno said at the Tianjin forum. The Japanese carmaker is developing the vehicle with Chinese joint ventures of Guangqi Honda Automobile Co. and Dongfeng Honda Automobile Co. and will create a new brand with them, he said. Nissan, which unveiled an upgraded model of its Leaf EV last week, said it will introduce the car in China in 2018 or 2019.
Big Read |