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Autos: Automakers are plugging into green energy

By Li Fangfang (China Daily)
Updated: 2009-02-09 08:01

Herbert Kohler, chief environmental officer of the German automaker told China Business Weekly that Mercedes-Benz also plans to produce electric B-Class and Smart cars.

Related publication:   Related readings:  Auto sales 'surpassed US in Jan'  China auto export slows down as demand falls  Auto suppliers want US government bailout

"An electric car is the best solution for zero exhaust for a not too long distance drive," said Kohler.

"Electricity is the future," said Aaron Bragman, an automotive industry analyst at consultancy IHS Global Insight. "Looking around the Detroit show, all roads will lead to that electric destination. It's the most efficient propulsion system we have. It's finally starting to catch up in terms of the technology, and over the next few years there will be a real proliferation of it."

As world's second biggest vehicle market and with the most crowded traffic in major cities, China is definitely a prime destination for electric cars.

China relies on imports for nearly half its oil. "If China continues its current growth rates it will almost double oil imports by 2030," said a recent McKinsey and Co report. "But greater use of electric cars would cut this growth by around a quarter."

Moreover, electric cars could be a more realistic hope for new energy vehicles because they may be the cheapest choice and meet a range of government goals, said the report.

If the electric cars would occupy 30 percent of China's domestic auto market, it will mean a possible 1.5 trillion yuan electric car market for the auto producers and a 40 billion yuan business opportunity to the parts enterprises.

"More importantly, China would go uphill to the top with the electric technologies in the world's third auto technology revolution," said the report.

Along with BYD Auto, China's Dongfeng, Chery, Chang'an and Wanxiang all have made huge investments into electric vehicle research and development.

"If they (Chinese automakers) can succeed in the commercialization of electric cars, China will no more count on foreign turbo engine technologies, and also can compete with international rivals on the same stage," said Jia Xinguang, an independent auto analyst.

"China should be one of the most potential markets for electric cars," said Toshiaki Otani, general manager of Dongfeng Nissan Passenger Vehicle Co.

He said Nissan will bring electric cars to China by 2012.

"It will be an ideal solution as the country seeks to boost sales of fuel-efficient vehicles to protect the environment and cut oil usage."

"They (automakers) are on a right way to electric cars. However, the cost, performance and the efficiency to charge batteries still remains a problem for the sales of plug-ins," said Zhang Xin, an analyst with Guotai Junan Securities.

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