Sunday, April 25, 2010

EV mass market: 60 percent of Chinese consumers would consider buying electric vehicles TNR.v, CZX.v. LMR.v, RM.v, SQM, FMC, ROC, LI.v, CLQ.v, AONE, F

"Price competition will drive Electric Cars mass market. Chinese companies will have yet to prove that they can claim auto brand properties, but cost wise they are out of competition. Once thousands of engineers working in China on lithium batteries, safety and design of Electric Cars convert quantity into quality this market will take off in iPod fashion."

Green cars a draw for ChinesePublished: 21 Apr 2010 08:02:01 PST
By Wang Xinyuan
About 60 percent of Chinese consumers would consider buying plug-in hybrids or pure electric vehicles in China, according to an Ernst & Young report released Wednesday, a percentage higher than in any other country surveyed.
The finding suggests huge market potential in China for green car manufacturers.
The company conducted a survey of 1,000 Chinese respondents who currently own a vehicle or plan to purchase one within three years.
Chinese consumer's interest in electric cars was the highest, followed by buyers in Italy, France, Germany, the UK, the US, and Japan.
Fuel savings, environmental impact, government incentives and safety favorably influenced Chinese consumers' willingness to buy a plug-in hybrid or pure electric car, according to the report.
The environmental benefit of green cars was cited as the top reason to purchase them by 82 percent of the Chinese respondents, the highest percentage among all countries surveyed.
Government incentives were the top motivator for 66 percent of German and 61 percent of Italian respondents, compared with 60 percent of the Chinese survey takers.
Battery driving range, access to charging stations, reliability and safety were cited as obstacles keeping Chinese consumers from buying green cars.
Roughly 82 percent of Chinese respondents considered a range per charge of less than 200 kilometers acceptable, and 79 percent believed electric cars will outnumber gasoline-powered cars within 20 years.
"We saw a real appetite in the market for plug-in hybrid and electric vehicles as a new means of transport in China and globally," said Mike Hanley, Ernst & Young's global automotive leader.
"The popularity of new powertrain technology will only increase and the market leaders will be those companies that have their fingers on the pulse of the consumer trends and behavior," he said.
Many car producers are already eyeing the alternative fuel vehicle market, including Chinese brands such as BYD, Geely, and Chery. Chery has launched an electric car already and Geely will launch one as well, the Beijing Times reported April 7 citing Li Shufu, the chairman of Geely.

Nissan Motor, Daimler and local brand BYD are expected to show electric cars at the upcoming 2010 Beijing International Automotive Exhibition, which opens tomorrow, Century Weekly reported Sunday.
Peugeot and Audi will also show hybrid and electric cars at the exhibition, according to the China Auto Show website.
Last January, the Ministry of Finance announced tentative measures to subsidize energy-efficient and alternative energy cars used in applications such as public transportation and taxi service.
Subsidies on individual purchases of hybrid and electric cars are expected to come out later in pilot cities.
State Grid Corporation, the country's largest operator of power grids, also announced early this year that it plans to build 75 charging stations for electric vehicles nationwide in 2010.
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