Electric Vehicle is not Noah’s Ark by China

http://www.gochinaauto.com/modules/wordpress/index.php/2010/07/05/electric-vehicle-is-not-noahs-ark-by-china/

Ministry of Finance released the 5 billion subsidy campaign for new energy vehicles in China. No automaker would lose any advantage in China auto market in this field, and I can smell another Great Leap Forward is coming.

In China’s planning the Hybrid is not the car to encourage. China offers only 3,000 RMB (450 USD) subsidy to Hybrid such as Toyota Prius. For Toyota Prius 3,000 is nothing for its price. It means Japanese brands are out of game at the beginning. There is no green light for Japan automaker in China’s new energy vehicles route.

From the bright side of this issue, promote EV is the best choice for the nation to avoid energy risk. Compared with the manufacturing ability gap between China and the advanced industrial nations, to develop EV is a shortcut to become an important player in the world. To takeover on the road is a dream of Chinese. But which way to choose is always controversial.

Auto Giants were intending to make breakthrough but all failed. GM tried to recover the dying auto empire by electric cars but the investment on this field accelerated its death.

Actually electric car is a totally different from traditional ones. The new industry will damage the profit of vested interests and the huge investment is also scared those western governments. That’s why the technology is there for years but the cheese was got by BYD eventually. These cars only for science fiction started their engines in China. The four Chinese Ministries eventually hold their opinions on this issue and started the venture of EV in China.

But for China’s independent automakers, except BYD others are not ready for the policy. Complains are rising just as expected. But those international players are taking actions very quickly. Daimler build cooperation with BYD the first time and Volkswagen is introducing its current electric technology into China.

It does not matter for those international players for they won’t really invest on the key technologies of electric vehicles: Battery, Electric motor and Electric control. The coming Chevrolet Volt will have a battery group made by China.

China National Petroleum Corp, China Petrochemical Corporation, China National Offshore Oil Corporation, State Grid, South Grid are all declared to invest largely in building charging station in China. And the investment could be really large. If EV can make success in some market, China must be the first one.


But will China build Noah’s Ark just like in《2012》for the whole human being? Volkswagen, Daimler, Toyota or Nissan, they might have to pay quite a lot if want to involved in the coming real game.

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