At the recent Beijing Auto Show, Chinese domestic car dealers urgently displayed their latest electric vehicles to show that they have embarked on a government-defined route. But global automakers are looking for ways to develop efficient engines and hybrid technologies to achieve their goals - in their view, hybrid cars are the most attractive option at the moment because of the "feasibility of being commercially sold."
China is intended to become the world's leading electric vehicle market. With sales increasing to 247,000 vehicles last year, far more than 115,000 vehicles in the United States, this ambition seems to be on track. But automakers and experts say that China's electric vehicle market still has a long way to go.
Beijing plans to comprehensively electrify automobiles as emission reduction routes, providing large amounts of financial support to buyers and manufacturers. At the recent Beijing Auto Show, Chinese domestic car dealers urgently displayed their latest electric vehicles to show that they have embarked on a government-defined route. But global automakers are looking for ways to develop efficient engines and hybrid technologies to achieve their goals - in their view, hybrid cars are the most attractive option at the moment because of the "feasibility of being commercially sold." Experts said that this difference between Chinese and foreign automakers highlights their different priorities. Domestic manufacturers are executors of government policies and hope to be seen as complying with government requirements. But international companies are more focused on building cars in the most efficient way and selling them.
The government’s economic incentives are boosting sales of electric vehicles in China, but problems including the lag in infrastructure development and “mileage anxiety†have caused Chinese consumers to remain uninterested in electric vehicles. Despite sales soaring last year, sales of new energy vehicles are still far from the 500,000 targets set by Beijing. Analysts in the auto industry said that they cannot create a real demand for electric vehicles and will endanger Beijing’s dream of promoting electric vehicles. When subsidies subside gradually, electric vehicles will be difficult to sell.
Faced with widespread reports that some car companies have taken state subsidies but have not concentrated on the research and development of electric vehicle technologies, the Chinese government is shifting from subsidizing production to car companies that have rewarded R&D for new technologies and sales targets. For Chinese car companies, if there is no subsidy, it is not worthwhile to produce electric cars. Consultant Clemens Vasner said that China’s electric vehicle sales target failed to be achieved last year, in part because of the slowness of Chinese car companies. “This year they are vigorously promoting new products. But no one is expecting to sell these cars. They are It's just to please the government."
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