China’s new rebates for electric vehicles in five large cities put the world on notice that the economic Goliath wants to clean its filthy air and curb its appetite for imported oil.
Chinese consumers receive $8,800 off an all-electric car, or $7,320 off a plug-in hybrid. Chinese consumers have shunned first-generation gas-electric hybrids because they cost nearly twice as much as gas-engine equivalents.
But it will take more than subsidies to catapult China to a leadership role in electric vehicle technology.
Americans buying the electric-powered Chevrolet Volt or Nissan Leaf will receive $7,500 tax credits. Buyers of conventional gas-electrics qualify for smaller credits.
The U.S. is installing a recharging infrastructure faster than China. By the end of this year there will be at least 1,000 public charging stations across nine metropolitan areas, including Detroit. China expects to have about 75 charging stations, according to the China Daily.
“I don’t see a short-term threat from China, but the fear is that companies like BYD could focus so intently on improving all-electric technology they could eventually introduce competitive (electric vehicles) here at an affordable price,” said Michael Omotoso, a powertrain analyst with J.D. Power and Associates.
China aims to be a global electric-car leader
Japanese and U.S. automakers will dominate the market for gasoline-electric hybrids that need no recharging, but Chinese automakers such as BYD and Geely are poised to make their mark with plug-in hybrids and all-electric vehicles, according to a recent J.D. Power and Associates study.
Pundits have already warned that China is prepared to rule the world of electrified transportation.
“China is going to eat our lunch and take our jobs on clean energy,” said Joe Romm, editor of Climateprogress.org. “China has clearly made a strategic decision that it wants to be a leader in batteries and electric vehicles.”
Globally, hybrid sales should approach 830,000 this year, up about 70% from 2007, the J.D. Power report estimates. The majority of that growth has occurred in Japan, where the Toyota Prius has been the best-selling car of any type for more than a year.
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Source: freep.com
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