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Domestic automobile manufacturers take centre stage in China’s EV market - ELECTRIC CHINA WEEKLY No14

03 October 2012

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Influenced by the Chinese government’s incentive policy for electric vehicles, many domestic automobile manufacturers are actively developing their own EV projects. Zotye has declared it will produce 20,000 to 50,000 EVs by 2015. BYD and JAC have become the exclusive providers of 23 EVs to 11 Chinese ministries and government agencies. Kandi has signed a purchase contract to supply 5000 EVs to Hangzhou’s EV demonstration project. 
BYD and JAC provides 23 EVs to eleven Chinese inistries and government agencies
 
On September 26, 11 Chinese ministries and agencies of the central government initiated a project to test-drive China-made electric cars among government departments in Beijing. Staff of the 11 ministries and agencies will drive a fleet of 23 electric cars from two domestic automobile manufacturers BYD and Anhui JAC Motors as their official vehicles in a one-year trial. This project aims to show the government’s support for China-made EVs and encourage the purchase of electric vehicles among consumers. 
 
Chinese ministries involved in the EV test-driving project include China's powerful economic planner, the National Development and Reform Commission, the Ministry of Science and Technology and the Ministry of Culture. More government agencies will join the trial in the future. 
 
 
Zotye aims to produce 20,000 to 50,000 EVs by 2015
 
China’s domestic automobile manufacturer Zotye plans to manufacture 20,000 to 50,000 EV by 2015 according to Mr Zhang Hao, vice president of Zotye’s new energy vehicle company. The target of China’s Energy-Saving and New Energy Vehicle Industry Development Plan (2012-2020) is to produce 500,000 EVs by 2015. Zotye aims to have 10% of the total EV market share in China.
 
The Hangzhou-based local EV marker has established its own independent EV distribution channels. It has opened new energy vehicle 4S stores in the city of Ningbo, Huzhou, Jinhua and Yongkang within Zhejiang Province and also in Beijing, Shanghai, Tianjin, Qingdao and Yulin. 
 
At present, the sales of EVs in China still rely on local government subsidies for new energy vehicles said Mr Zhang Hao. However, localised protectionism in some regions, where only those EVs produced by local manufacturers receive support prevents the healthly development of the EV market in China. In Shanghai, Zotye has sold 13 EVs but has yet to receive the promised purchase subsidies because Shanghai has still not released detailed of its EV policy. “Regional protectionism is the reason for the delayed policy details,” said Zhang. Mr Zhang also said Shanghai will not release subsidy policy details until the Shanghai-based SAIC launches its own EV product, Roewe E50. Of the 25 pilot cities, only Shenzhen, Hefei and Hangzhou have seriously implemented the NEV purchase subsidy said Mr Zhang Hao. 

 
Kandi signs contract to provide 5,000 EVs to Hangzou 
 
Kandi Technologies, Corp. announced on October 1 that its wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. in China has signed a sales contract with China Aviation Lithium Battery (Hangzhou) Co., Ltd. (CALB Hangzou) to provide the 5,000 EVs for the Hangzou EV demonstration project. According to the contract, China Aviation Lithium Battery will purchase 5,000 JNJ6290EV model pure electric vehicles (without batteries) from Kandi Vehicles. The total value of the purchase is RMB199 million (~€24.4 million). 
 
The original articles are listed below in the order of appearance in the column.



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