Chen Qingtai:low-speed electric car is the

　　September 3, 2010, China Automotive Industry Development Forum entitled the reputation of “Automotive Industry Davos” held in Tianjin Binhai New Area.

　　Focus on the annual theme of he restructuring and upgrade of China automobile industry, the senior leadership from government, industry and corporations will start in-depth discussion. More than 600 government officials, industry leaders, business leaders and scholars have participated in this forum.

　　September 3, 2010, during the round table meeting of China Automotive Industry Development Forum, the Tenth CPPCC Standing Committee member, deputy director of the Economic Commission Chen Qingtai, made a keynote speech. SOHU AUTO interviewed a number of representatives about the report. Chen’s report is divided into two parts: how to realize the industrial upgrading and development of new industries and to seize the historic opportunity of new energy vehicles.

　　On the eye-catching issue of the development of new energy vehicles, Chen Qingtai held an opinion that we should realize industrialization, although this will suffer higher risk, but once succeed, it will be the starting effect.

　　He said we have entered the eve of industrialization of electric vehicles. At this critical moment, we are confronted with two options, one is we wait until the foreign industrialization finished and then catch up immediately. This approach has small risk and need less input; however, we can never become the industry leader.

　　Another is to realize the industrialization through more policies and investments as well as accelerated R & D, improved technical standards and commercial model fit for the national conditions. The latter approach requires more input and takes greater risks, and will face enormous pressure from international competitors. However, once succeed; we are likely to occupy a leading position.

　　Chen Qingtai holds an opinion that currently there are varied options about electric vehicle technologies. The unformed intellectual property and technology patents barrier, the unfinished international standards, and the business model to be developed as well as the large-scale production started brewing, and unclear competitive landscape all leave space and great opportunity for the emerging countries and enterprises .

　　As to China, Chen Qingtai thinks that the plug-in electric cars are more in line with our strategic development direction. For the following reasons:

　　First, the efficiency of traditional internal combustion engine has been further improved, which left less room for emissions reeducation. As the marginal costs are increasing, China has few advantages.

　　Second, the transition of technical power is an opportunity to China. We generally keep up with the pace of the world. If the chance is properly managed, we could use this as a starting point to make China auto industry not only bigger but also stronger.

　　Third, electric vehicles can represent the innovation and development of battery, new motors, electrical systems, electrical features, intelligent software, and circuit technology facilities and intelligent and form a growth opportunity in the next two to three years, which is an ideal strategic new industry.

　　Fourth, the local electric car companies’ core technologies have largely kept up with the foreign level. Our country has rich main raw material ratio of electric vehicles and power system, which can offer a strong low-cost manufacturing advantage. Besides, China is the world’s largest auto market. It is the first purchase for most consumers, which means smaller resistance and less costs to transfer technologies.

　　With these major advantages, China could achieve a leap forward in the field of electric vehicles.

　　Referring to the issue of break through in industrialization of electric vehicles, he suggested the following measures:

　　First, we should implement both binding and incentive policies, such as a higher level of average fuel emissions and fuel emissions tax. At the same time, the governments can offer financial support to R&D, and lead to improve the related infrastructure. Subsidies within a certain period can also be effective.

　　Second, the government should promote the reformation of the fuel tax. Low tax in U.S. has led to large cars and high fuel consumption while high tax in Europe has promoted energy-saving technology and the popularity of small cars. Compared with the major countries, China’s fuel tax has large space to be adjusted. The government should remake the medium-term improvement plan to guide the rational consumption.

　　Third, low-speed electric cars had better be taken as an important breakthrough. Early in 1998, the United States published related policy to boost the low-speed electric vehicles. Now in Shandong, Zhejiang and other places, within the second and third-tire cities and at the junction of urban and rural areas, the small four-wheel low-speed electric vehicles are quietly becoming popular. People are willing to manufacture and spend on this kind of car. With the diversification of the consumption structure, use the utilization will increase is lithium adopted instead of the current lead-acid. If we follow the practice of the United States, low-speed electric cars can develop to a large industry like the previous motorcycle and electric bike.

　　Fourth, the technical standards should be strict while market access had better be relaxed. As technological upgrading of existing products, the industry structure and competitive situation are facing re-shuffle. In face of the technological revolutionary, the companies will always choose to hold a wait and see attitude. On the other hand, the major technological breakthrough can provide the new opportunity.

　　They are more willing to challenge more difficult and risky new technologies and new products and usually become an important force to promote the development of new industries. The participation of new entrants will enable the rapid advance of the industry. To avoid the disorder, the relevant technical standards in environment, safety, reliability should be formulated as soon as possible.

　　(Translator: Yalong/Jessie)

　　See original Chinese report Please click: http://auto.sohu.com/20100904/n274699306.shtml