FAW: To Develop Hybrid Vehicles is More

　　Editor's Notes: On June 1 China issued The Notice on Pilot Subsidies for Private Purchase of New Energy Vehicles which indicated that consumers will obtain up to 50,000 yuan when buying plug-in hybrid passenger vehicles. For a consumer who buys a pure electric car, he or she can get as much as 60,000 yuan as subsidy. As to those energy-efficient cars, the one-time fixed subsidy standard is 3,000 yuan.

　　China offers different amount of subsidies for different kinds of new energy vehicles. Such a distinctive feature has been interpreted by some insiders in automotive industry. They believed that China has explicitly set pure electric vehicles as the main development direction in the future regarding the industry of new energy vehicles.

　　By now some automakers have taken some actions in the field of new energy vehicles. So what effects will the new policy exert? How will those automakers respond to the policy? Auto.sohu.com has interviewed FAW Group and received some answers.

　　Sohu Auto: Different kinds of cars enjoy different amount of subsidies. Some insiders in automotive industry pointed out the policy has indicated that Chinese government prefers pure electric vehicles when choosing the technology of new energy vehicles. So what do you think?

　　FAW: Though plug-in hybrid vehicles and electric vehicles receive different amount of subsidies, we cannot draw a conclusion that as to the choice of new energy technology Chinese government has preferred electric vehicles. The production cost of plug-in hybrid vehicles and electric vehicles is different. Electric vehicles need more batteries and cost is higher. Therefore, higher amount of subsidies is normal. Based on the subsidy program, two technology routes are same. Both plug-in hybrid vehicles and electric vehicles can enjoy the same subsidies-3000/kwh.

　　Sohu Auto: Has FAW reinforced the development of electric vehicles in response to the new policy?

　　FAW: FAW has attached great importance to the technology routes of plug-in hybrid vehicles and electric vehicles. The development work is undergoing.

　　Sohu Auto: How much money has FAW invested in the field of new energy vehicles? How much will be invested in the future? What's the focus of investment?

　　FAW: Since the year of 1998 FAW has been developing new energy vehicles. During the Ninth Five-Year Plan and Tenth Five-Year Plan, the focus is hybrid vehicles. From the Eleventh Five-Year Plan, FAW began developing plug-in hybrid vehicles and electric vehicles. For hybrid vehicles, plug-in hybrid vehicles and electric vehicles, they have a lot of parts which are also used in traditional cars. Therefore it is difficult to figure out how many funds have been spent for research and development. In addition, FAW has set electric vehicles as the strategic products to carry out development. Thus in the future the investment will be huge. The key tasks are the core technologies of vehicle platform and key components, such as the control of vehicle power, battery group and control technology.

　　Sohu Auto: Currently in China which kind of new energy technology is more in line with reality?

　　FAW: It is hard to say. At present, in China hybrid cars, plug-in hybrid cars and electric cars are not that mature. From the international point of view, due to the constraints caused by battery technology, in theory the product technology of hybrid vehicles is more realistic.

　　Sohu Auto: Should we choose one of new energy technologies as a particular focus or develop a variety of technologies at the same time?

　　FAW: Now it is not clear when battery technology can achieve breakthrough. So it may not be appropriate to solely support one technology. We think Chinese government issued a right policy in time, which will promote the development of new energy vehicles in China. Moreover, the policy will also promote China's independent development of core technologies of new energy vehicles. FAW will fully support government's policies and actively participate in the demonstration and promotion of new energy vehicles. (Translator: Qinghua/Hanxin)

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　　http://auto.sohu.com/20100610/n272704762.shtml