EV to Become More Mature with Potentials

It is expected that electric cars will become the hottest topic in this year’s China (Guangzhou) International Automobile Exhibition. We can make a bold prediction that electric cars will show their presence on almost all the major brands’ stages, according to the 21st Business Century Herald. It has been five years since Toyota launched Prius in 2004. With the participation of the Department of Engineering and Communication and the Department of Science and Technology, together with this year’s Auto Revitalization Plan as well as related new policies aimed at encouraging new energy vehicles and subsidy for new energy cars, almost overnight tens of thousands of companies have launched electric cars to fight for the market share in the future.

Except those major companies which are concerned widely such as Chery, BYD, and other companies also take an active role in the launch of electric cars. In the article published by the Sunday Times on July 6, “in Hangzhou which is 90 miles away from Shanghai in the southwest direction (Chung-tai) Newbell made an announcement that the company has developed the pure electric vehicles which has advantage in the driving range over the gasoline-only vehicles.” At present, in Zhejiang Province there are a lot of businesses in both electric cars components and overall producing, such as the well-known Geely, Chung-tai, Universal, Luyuan. Two weeks ago, CCTV Half-hour Economy reported that Shandong Shifeng and other enterprises produced some imitated electric cars.

The trend of electric cars is spreading in the whole country. Based on the current outbreak of China’s electric cars, the Sino-US Joint Statement published on the 17th pointed out that the Sino-US Joint Research Center of Clean Energy will give priority to the research topics of energy-efficient building, clean coal(including carbon capture and storage), and clean vehicles. Analysts pointed out that the priority issue embodies the new direction of Sino-US energy cooperation. Electric vehicles and companies related to energy-efficient building are expected to benefit from the first Sino-US cooperation. China and US government also announced ten joint demonstration projects in several cities and efforts to develop common technical standards to promote the rapid growth of the industry scale.

A week ago, Nissan-Renault Alliance CEO Carlos Ghosn flew to Guangzhou and declared the main direction of Nissan in the future-that is electric cars. The joint department of engineering and communication of Nissan has been carrying out the construction of electric car infrastructure network in Wuhan and other places. In Shenzhen, charging facilities for the construction work has already begun by the jointed efforts of Shenzhen Municipal Government and BYD.

With the industrialization of electric cars to enter the early stage, a standard electric vehicle competition will be inevitable; in particular, an enclosure movement of charging networks between Nissan and BYD will emerge.

On November 9th, Roland Berger officially released the latest research report on the global prospect for new energy vehicle. The report for the first time referred to the global prospect for hybrid and electric vehicle components, in which the total market value of China’s power-driven assembly of components will exceed 10 billion euros. In addition, the total market value in 2011, 2014 and 2017 will be 600 million, 2.4 billion and 5.6 billion euros respectively. The moderately-estimated market value will reach 6.5 billion euros in 2020; even a conservative estimate will reach 2.4 billion euros.

According to forecasts, it is estimated that Western Europe will become the major market by 2020, and the annual sales of electric vehicle and plug-in hybrids will be more than 3 million, plus, China will rank second with the sales of 1.58 million units, whose overall sales accounts above 16% of passenger cars. (Qinghua/Sailor)

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