Lithium Drive: Clean Air: Beijing to become a paradise for Electric Vehicles sales tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, abn.v, res, mcp, avl.to, quc.v, cee.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, gm, dai, rno.pa, hev, aone, vlnc

"China has promoted Electric Cars to the status of strategic industry, Lithium and Rare Earths are already gaining status of strategic commodities as the base for this new disruptive technology - we will have a far reaching M&A developments from this explosive combination in these very small markets.

"Nothing is changing under the sun in the US Corp. so far - America is under the oil lobby stronghold and if you would like to understand the real situation, just talk to the junior miners in Lithium and REE sectors. Chinese, Koreans and Japanese companies are the only one on the road now, buying all available projects in Lithium and REE space.

  Facebook is great, but how are we going to drive in five years time? What are we going to eat for that matter with Oil above 150 dollars again?

  

There is almost no money available now in U.S. or Canada to advance the Lithium and REE exploration, apart from few names everybody is talking about now. The rest of the sector will be funded by the Asian interest in the end."

"China's commitment to high efficiency vehicles

- Electric vehicles are classified as a "strategic industry" under the twelfth Five-Year plan (2011-15), and parts manufactures will receive tax breaks and subsidies. the government has pledged that it will do whatever is necessary to push Chinese auto industry into the lead on electric vehicles over the next decade.

- Premier Wen Jiabao's choice three years ago for Minister of Science and Technology, WAN Gang, was the first minister in at least three decades who is not a member of the Communist Party, but he is former Audi auto engineer and ex-chief scientist for the Chinese' government research panel on electric cars.

- Senior Chinese officials, including Wan Gang, have outlined China's aim to be the world's largest producer of electric cars within three years, with a near-term goal of producing 500k units in 2011.

- The central government has already pledged about $17B to push the electric vehicle effort, including about $2B for R&D and an $8,800/car subsidy in 26 cities (announced in June). Provincial governments have been encouraged to contribute on top of that.

- The state-owned utilities have been tasked with building out the smart grid and charging infrastructure required for a rapid ramp up in electrics. According to the State Grid Corporation (SGC), which provides about 85% of the country's power, 75 electric charging stations are planned for 27 cities by the end of 2010. The pace will accelerate next year."  

ChinaCarTimes:

Beijing to become a paradise for electric vehicle sales

INDUSTRY NEWS | ASH | APRIL 9, 2011 

I often wondered why Chinese auto makers would push forth with their electric and hybrid concepts at auto shows, its not as if there is a huge market for them in China, from China Car Times own articles you can easily see that sales are rather weak, this article states that only 54 hybrid and new energy vehicles were sold between January and October 2010, but BYD cleared sales of 74 BYD F3DM’s in March which goes some way to showing that the market is improving somewhat for hybrid vehicles and China seems to be slowly moving away from the No Demand for Hybrids in China headlines.

Yesterday morning I received an email from The Truth About Cars Bertel Schmit, he wanted me to join his campaign to persuade the Beijing government to offer free license plates to EV buyers in a bid to boost the local car market. Beijing killed its local car market this year after nearly 800,000 cars took to dusty capitals roads in 2010, for 2011 the government offered just 20,000 license plates per month that could be gained via a lottery. Of the 20,000 lucky winners in January, just 2000 people went on to buy a car, they do of course have three months to buy a car before their license plate ticket gets thrown back into the pool. What Bertel didn’t realize is that just as he posted his plans for free license plates for EV buyers in Beijing, is that the Beijing Municipal Govt announced the very next morning that they were going to do exactly what Bertel was suggesting.

Beijing has announced that its ’125 Project’ has already received official approval and will begin the creation of a strategically important electric car industry within the capital.

The ’125 project’ was initiated by Beijing Automotive Industry Organisation and was quickly approved by Beijing Municipal Economic and Reform Council, by 2015 the production of electric cars in Beijing is to reach the 100,000 units per year barrier.

According to what we have learned so far, pure electric vehicles, (EV’s) are to become the major benefactor from the new plan. Beijing’s own local manufacturers such as Foton and Beijing Auto are expected to gain the most from the new plans, as both of these companies already have electric vehicles ready to role. Foton has introduced its Midi electric van into the market as a taxi and BAIC are planning to launch electric variants of their Saab based products and also the C30 hatchback. (BAIC actually has the following electric vehicles in development: Q60FB、C30DB、701EV、C71EV)

The biggest news is obviously for the end consumer, instead of dreaming about getting the much coveted Beijing tin plate for their gasoline based car they will be able to buy the EV straight off the shelf without having to wait in line for a lottery, they wont be subjected to the odd/even license plate restrictions that Beijing has introduced and more importantly they wont have to pay sales tax on their EV – the biggest kicker of all will be the 120,000rmb subsidy that Beijing is offering to buyers of electric vehicles.

Why the absence of hybrids in this plan? It appears that Beijing Govt is wise to Chinese automakers and their attempts to roll out mild hybrids, essentially cars with larger than normal alternators that allow for stop and start systems, Beijing is clearly looking to jump the hybrid generation and go straight for the EV jugular.

So will the EV sales begin to fly in Beijing? Not quite so fast, there is still a severe lack of showroom ready EV’s, you cannot walk into a dealership yet and buy the BYD E6 or the Riich M1 EV or any of the other Chinese made EV’s as of yet"

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