Increasing numbers of global automakers are giving out EV technology to pave new roads into the growing Chinese market.
In the past few months General Motors, Suzuki Motor Corp., Volkswagen AG, Daimler AG and Nissan Motor Co. have all agreed to start developing and building electric vehicles (Evs) in China, despite low market demand and poor sales from existing EV brands such as BYD. According to Automotive News China's Yang Jian, foreign automakers are doing so to secure approval from Beijing to expand operations across China.
BYD's all-electric e6? Image: BYD |
Recently, GM announced a new venture with SAIC Motor Corp. to create a pure-electric Chinese EV brand at their jointly-operated Pan Asian Technical Automotive Centre. VW has also teamed up with SAIC to develop an electric version of the popular Golf as part of its new Chinese brand, Tantus. This has helped the company obtain permits from the NDRC to build a new plant in China's southern Guangdong province.
Nissan has taken a similar approach with Dongfeng Motor Corp., and will produce a new EV under the Venucia brand as part of Nissan CEO Carlos Ghosn's 50 billion yuan expansion plan, while BYD has also managed to negotiate a joint venture with Daimler.
However, some private Chinese automakers have not been able to jump onto the bandwagon so easily. The likes of Geely and Great Wall have been frozen out as Beijing favours new technology and partnerships to state-owned enterprises.
Beijing-based BAIC will deliver 120 new EVs to Beijing's police force this month, as the city makes efforts to encourage greener cars. The city will also provide an unlimited number of license plates for those purchasing EVs, although some analysts fear the high price of EVs, which are up to 200,00rmb more expensive than their petrol-powered counterparts, will still deter potential buyers.