Published By : 27 Feb 2014 | Published By : QYRESEARCH
Chinese companies and other global players are showing an increasing interest in fulfilling China’s electric vehicle ambitions. China has not been too successful thus far in promoting electric cars to the fullest and realizing the full potential of this market.
But this could soon change with two Chinese automakers winning an approval from the Beijing municipal council for the sale of electric cars. These companies are BYD Co. (a company that is partially backed by Warren Buffet) and BAIC Motor Co. Shares of the former spiked by 9.6% in Hong Kong following the news of approval.
The all- electric crossover vehicle from BYD has witnessed considerable sales in Shenzhen, a city in southern China, given that the company is based out of this city. However, most of these vehicles are used as buses or taxicabs.
Among international players interested in making headway into this market is Switzerland- based ABB Ltd. The company said that it will soon begin manufacturing and marketing wall- mounted electric chargers for these cars. These chargers would mainly be for home use. The company is confident that this way it will be able to address the current shortage of electric chargers that exists in China. If China is to give a serious boost to the number of electric vehicles that ply on its roads, it needs to address the infrastructure problem at the earliest.
The Chinese government has set a target of having at least 500,000 all- electric and hybrid vehicles on its roads by the end of 2015, and a total of five million vehicles on its roads by the end of 2020. However, the sales of such vehicles only just notched 17,600 units in 2013. Rough estimates reveal that only around 50,000 electric vehicles currently ply in China.
The promotion of electric vehicles will also help China address its serious smog problem that in part results from automotive emissions.
Other players such as Tesla are also targeting manufacturing operations of electric vehicles in China.