Follow this blog:
RSS

China sees a bright future for electric vehicles

By | February 21, 2013, 4:56 AM PST

Despite all the media focus on electric cars, their adoption in the U.S. and around the world can be considered halting at best. The much-hyped Nissan Leaf, for instance, sold only 9,819 units in 2012 - even Nissan CEO Carlos Ghosn admitted that was a disappointment.

Yet Chinese companies have made a serious investment push behind EVs recently. Geely Automobile, Dongfeng Motors, and other Chinese automakers are in the process of bidding to take over Fisker, the maker of the electric Karma model. BYD, another Chinese automaker, plans to launch a new model, the Denza, in a joint venture with Daimler later this year.

Furthermore, the country’s Wanxiang Group has just received the go-ahead from the U.S. government to buy the bankrupt A123 Systems for $256 million. Before declaring bankruptcy, the company was a high-quality developer of electric car batteries, and it had received $133 in federal grants.

Meanwhile, the fortunes of electric cars elsewhere continue to be shaky. A recent, controversial New York Times test drive of Elon Musk’s highly touted Tesla Model S electric vehicle went sour when the car ran out of battery and had to be towed.

China has promised to get 5 million electric vehicles on the road by 2020 - and it appears that the country’s automakers are betting that the government will keep its promise.

While consumers in most of the world are held back by EVs’ cost as well as range anxiety, China’s government, keen to avoid long-term dependency on oil, can provide consumers with significant rebates (including a $9,600 subsidy to EV buyers) and direct purchase mandates, and can facilitate widespread charging infrastructure initiatives. This can shield the consumer EV market from some of the market considerations (like price) that keep most other consumers from adopting electric vehicles.

It seems that at least in China, electric vehicles may in fact have a bright future.

Photo: Denza

via [Wall Street Journal]

Start your week smarter with our weekly e-mail newsletter. It's your cheat sheet for good ideas. Get it.

Channtal Fleischfresser

About Channtal Fleischfresser

Channtal Fleischfresser is a contributing editor for SmartPlanet.

Channtal Fleischfresser

Channtal Fleischfresser

Contributing Editor

Channtal Fleischfresser has worked for The Economist, WNET/Channel 13, Al Jazeera English, Wall Street Journal and Associated Press. She holds degrees from the University of Pennsylvania and the Columbia University Graduate School of Journalism. She is based in New York.

Follow her on Twitter.

Channtal Fleischfresser

Channtal Fleischfresser

Channtal does not have financial holdings that would influence how or what she covers.

She writes for SmartPlanet and is not an employee of CBS.

If you liked this, don't miss...
8
Comments

Join the conversation!

Follow via:
RSS
-4 Votes
+ -
The problems are the same in China, as in the rest of the world.
Therefore, the Chinese people will reject the EVs as much as the rest of the world.

But, in China, where income is comparatively a lot less than in the other developed countries, purchase of the vehicles will be a lot fewer, percentage-wise.

The only reason that EVs are still being talked about, is because governments are the biggest proponents and are offering subsidies to make the sticker shock not so hurtful.

The Chinese government will continue to push EVs, and so might liberal governments all over the world, but, the problems will persist, and EVs will continue to remain impractical when they can't even begin to compete against fossil-fueled cars.

The most hopeful estimates I heard last week, was that, EVs and hybrids combined, might take about 2-5% of the market by 2025. That's not success; that's failure. However, by 2025, the EV makers might have pulled out or stopped making them, and the market share for EVs/hybrids might be closer to 0-1%, or, somewhere in the same range as Linux on PC/laptops. wink
Posted by adornoe
21st Feb
+1 Vote
+ -
EVs and DIY, or more Big Fossil Fuel Tycoons... Barons.... Monopolies...
So, Your Reader considers himself and expert. Does He regard the I.C.E. a success Story? Look what damage it has caused. The I.C.E. wastes 40% of it Energy Generated as Heat. So, I am taking a "Calculated Guess", this Reader has a vested interest in the failure of EVs. Why else would such a comment be made. The Reader is happy with the Fixed Prices on Crude Fossil? The Reader regards what to be better than EV Development? More Fossil Fuels? CNG has been criticized by the Largest Supplier of Nat Gas with no other obvious reason than to keep Low Priced CNG out to protect Gasoline Price. The attitude here is not a contribution to the future, it is to derail the EVs Future, to insure more of the same from the Fossil PACs. So, what We are witnessing is the reaction of the world's largest Global Energy Producers and Price Fixers exhibiting their Fear Based Reaction to the major Changes in the Structure of Energy Demand heading toward Personal Energy Development. Plug in at Home, CNG at Home, and a range of Options now available in connection with Cleaner, Leaner, and Your Own Electrical Energy directly off Your Roof top, Garage, Yard, Farm or Office Building. We can choose Our Destiny without someone deciding the Numbers while writing with a Fist Full of PAC Funds... Patrick of EnergyIndependence
Posted by EnergyIndependence
22nd Feb
+1 Vote
+ -
EV's versus Hybrid's
I think this is an exciting time for EV/Hybrids and can't wait to see what happens over the next few years, but it seems to me that at least for the foreseen future people are going to prefer the hybrid. I just don't see how all electric will work given the lack of range and charging points, no matter where in the world. I see that the German Schaeffler Group have a concept hybrid which demontrates various options available for e-mobility. It has a combustion engine, a central electric motor and two wheel hub motors and can re-charge using it's own kinetic energy, although it is a plug-in. Also, whilst I was at the Detroit motor show this year I saw another concept car from Schaeffler which showed several options for fuel saving in order for automotive manufacturers to be able to comply with the fuel consumption and emission regulations required by CAFE for 2020 and 2025. Put this together with the Schaeffler Hybrid and we have a vehicle which should be economical on all counts.to run plus give the range required for today's needs.
Posted by jensenp13
22nd Feb
+2 Votes
+ -
Range Anxiety - Average Daily Travel Distances?
I remember the First Mobile Phone, in a Carry Bag, it was called: "The Brick". Microsoft's Bill Gates originally said that a mere 64KB of Data Storage was all You would need! Graham Bell offered His First Phone to Western Union, who said they had little need for it. Bell, Himself, went on to say: Every City should have a Phone.
So, let's be accurate with EV or Normal I.C.E Passenger Car Range. The US EPA and others provide Daily averages within or under the Offerings of Most EVs. So, where is the Range Anxiety really coming from: PACs of Global Fossil Companies and I.C.E.s? You tell Me why non Users are Negative?? Only can be those Paid to Complain when the have no vested Interest in EVs Succeeding = Non Owners, Non Sellers, Non Manufacturers, Non OEMs. You can install a EV Battery Charger via GE or others, in Your Garage, or Carport, or Parking Garage at Work, etc. The Access to recharging network is growing as We speak. Where is this negativity coming from??? I want EVs to succeed! Do You/Do They? Patrick of EnergyIndependence.
Posted by EnergyIndependence
22nd Feb
0 Votes
+ -
EV's success
I definately want EV's to succeed, I just worry about where all the power is going to come from to charge all these vehicles if it takes off. Great - re-charging points everywhere, but what happens to the national grid when 2 zillion people are charging at the same time. What about solar power ? Surely something could be done to harness that ? In the meanwhile let companies like Schaeffler and Honda for example continue to invest in R&D to find solutions to this issue because so far I have'nt heard of anything better to solve the problem.
Posted by jensenp13
23rd Feb
0 Votes
+ -
It's the power structure
The most powerful faction in the U.S. is the oil industry, and automobiles are the biggest user of their product. Thus we get the hate for EVs - they would take that market away from the oil companies. Admittedly, battery tech at this point makes it impossible to build an affordable EV with good range, but that's just a temporary problem - it accounts for the poor sales, but not for the hate.

The Chinese economy is built on manufacturing - and they make batteries, as well as wind and solar electric generation equipment. Oil is a big cost for them, not a profit center. EVs are a win-win for China, so of course they're promoting them.

I'm sure EVs are the wave of the future, but it's a future the oil companies and the politicians in their pockets would like to delay as long as possible. The Chinese would like to hurry it along. This short-sightedness in our country will hurt us in the long run - it's China that's positioning itself to dominate the next wave of technology.
Posted by Greenknight_z
23rd Feb
0 Votes
+ -
Lucky Leaf
We love the Leaf, but despite the depressed sales, there is a silver lining.

It happens that the Leaf sometimes up to 1/2 its range in heat. This was demonstrated in Arizona last summer, and more recently by fleet Leaf taxi cabs in Japan.

This is a chance for Nissan to fix the problem before selling too many more cars.

EVsRock!
Posted by EVsRoll
26th Feb
0 Votes
+ -
Is all a price thing
Provided the selling price and performance of a EV is closely comparable to gas one people will switch. Currently the EV just do not look cool enough with that extra amount on the price tag.
Posted by aktabo
Updated - 28th Feb
Join the conversation
Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]

Join the SmartPlanet community and join the conversation! Signing up is fast and free. Don't wait -- we want to hear your opinion!