New Energy Vehicle Subsidy Pilot nothing

　　According to Southern Daily News, One day later than expected, incentive program for fuel-efficient vehicles on a trial basis in five cities officially announced by the ministry of Treasury. Similar to the outside rumors, the state will subsidy plug (plug-in) hybrid electric and pure electric passenger cars the purchase process at least 3,000 Yuan according to the size of the battery capacity. The subsidy of hybrid electric and pure electric cars can respectively reach 50,000 and 60,000 Yuan.

　　Undoubtedly, this incentive program has a representative significance, which implies the government encourages the development of new energy vehicles. Currently, domestic companies such as Chery, Chang’an, Dongfeng have already developed their own electric and hybrid vehicles. However, confined by various objective reasons, though they have no lack of attention, the scale still can not be formed.

　　Currently, though the gaps among various countries in the field of electric vehicles are not large, the competition has gradually intensified, leaving not much time to domestic enterprises. From the schedules of foreign brands, Nissan Leaf will be available in China auto market in 2011. Besides, aiming at China electric vehicle market, Volkswagen and BMW has also started the electric vehicle strategy. If the new energy vehicles can not be promoted increasingly, China’s independent brands will again lag in the new round of competition.

　　For the government, what new energy automotive industry brought about can be said multiple economic and social benefits. Take Shenzhen for example; if new energy projects can be carried out as planned, till 2012, 109,000 tons of refined oil is expected to be saved annually and fuel costs about 0.58 billion Yuan as well as 146,000 tons of carbon dioxide emissions to be cut down. Meanwhile, the new energy automotive industry can achieve an annual sales income of 60 billion Yuan and tax revenues of more than 10 billion annually, about more than 3 billion Yuan contribution to the local finance.

　　However, confronted with the attractive benefits, whether the pilot of new energy vehicles can be successes is a test for these municipal governments.

　　In the SINA’s survey about “can the pilot project bring real benefits to consumers”, 38.7% of Internet users gave a negative answer for subsidies will not be paid directly to the consumers while 35.6% were uncertain as after-sales service costs will still be high. The survey directly reflects the embarrassing situation new energy vehicles are in face of. To BYD electric model F3DM for example, guidance price of the manufacturer is 149,800 Yuan, the market guidance price is still high to89, 800 Yuan even if the maximum subsidy of 60,000 Yuan is given, which is much higher that the F3 gasoline model with a price of about 50 thousand Yuan. In this circumstance, how can new energy vehicles attract consumers? What are the actual supports of new energy vehicles?

　　Moreover, compared to conventional vehicles, the problem of charging is bothering new energy vehicles industry. Presently, many consumers are still holding a wait-and-see attitude. Some industry analysts even believe that the pilot project is nothing else but “a hot potato” .How to build infrastructures such as charging stations? How to obtain social benefits after investments?

　　How to achieve the win-win situation no doubt will be a test for the wisdom of municipal governments.

　　(Translator: Yalong/Jessie)

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　　http://auto.sohu.com/20100604/n272561007.shtml