Development of new energy vehicles still long way to go

(chinatrucks.com, Mar.15, 2010)Something that got special mention in the government work report delivered last week by Premier Wen Jiabao was developing new energy vehicles. In fact, the concept is not a novel one for many Chinese auto makers, who even last year launched several clean models.

But they still have a long way to go before they can hope to come up with their own technology to produce green cars on a scale that's large enough to make a difference.

NPC deputies here in Beijing for their annual session have looked at this problem and say what this sector needs is funds to carry out vital research and development and bring down the cost of buying and running the final product.

Chinese auto makers are showing enthusiasm for new energy vehicles. So far, 42 companies have added new energy vehicle models to their product lists. However, further development is being hampered by the lack of funding for R-and-D. In addition, more support from the government is also needed before new energy vehicles can properly tap the market.

Wang Fengying, NPC Deputy, President of Great Wall Motor, said, "There should be more policy support for new energy vehicles. Low emission cars should also be promoted. This is important for energy saving."

Ma Chunji, NPC Deputy, President of Sinotruk, said, "Lacking the ability to carry out R and D is the biggest problem. Another is industrialization in the field. This is an issue that governments at all levels are studying. New energy cars should be developed in a healthy way."

In 2009, China carried out a series of policies to promote new energy vehicles, with the hope that sales of new energy vehicles would account for five percent of total sales by 2011. But many consumers have been put off by the high cost of both buying and using a new energy car.

Guo Gengmao, NPC Deputy, Governor of Henan Province, said, "A big negative factor is cost. Consumers think it is too expensive to drive a new energy car. The first technical problem is the battery. It still needs improvement. The second is that there should be a complete industrial chain, ranging from research, production, recharging stations, and favorable policies. Our province has formed a technology alliance to deal with the issue."

Officials from the Ministry of Industry and Information Technology say they plan to set aside more trial cities for the promotion of new energy vehicles. While subsidies of up to 60 thousand yuan will be offered to those buying a new energy car. Industry insiders say they expect 2010 to be a year of major breakthrough for Chinese-made new energy vehicles.

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