China Youngman Automobile Group Co., Ltd., one of China's private carmakers, lately announced that it had set about a new energy auto project worth more than CNY 4 billion in the eastern Chinese city of Haining, Zhejiang Province.
If successful, it will become the largest new energy vehicle project in China. Following some other private peers, including BYD Auto, Geely Automobile Holdings Ltd. (SEHK: 0175), Zotye Auto, and Great Wall Motor Co., Ltd. (SEHK: 2333), Youngman Automobile decides to heavily bet on this field with high growth potential.
The Haining-located project, with an annual estimated sales value of CNY 20 billion or so, is designed to turn out light-duty cars, sedans, new energy powertrain systems, vehicle bridges, transmission, as well as inner and exterior auto decorations, after the operation around two years later.
The Youngman Automobile President Pang Qingnian once said for many times that it was indeed indispensable for a carmaker to tap the new energy sector. Currently, the key point of auto energy saving and emission cut should be the fuel saving ratio enlargement via technical progress or increment of the passenger car seats, added Mr. Pang.
Headquartered in Jinhua, Zhejiang's another city, the private company has put its hybrid natural gas passenger car into trial run and unveiled the sample EV (electric vehicle).
However, the immature new energy technologies in China and even the whole European and American markets as well as the short-life but expensive batteries are the big obstructions to its EV promotion in the near future. And related projects are predicted to waste too much resource and capital.
So Mr. Pang always regards technical upgrade as the most important things. New energy carmakers cannot drive their industrialization in virtue of the Chinese government's policy support but on the strength of low costs and prices via the continuous technical upgrade.
At present, domestic private carmakers are becoming the main forces involved in new energy auto production. BYD Auto, for instance, has taken the lead in retailing its electric sedan, F3DM, and total sales volume for the entire 2010 is expected to hit 1,000 units, said people with the direct knowledge of the matter.
Youngman Automobile, which commits itself to yielding passenger cars, heavy-duty trucks, sedans, and auto parts, has set up a batch of production bases across China, and its products have been exported to the US, Europe, Russia, South Korea, Singapore, Middle East, etc. Remarkably, the company has teamed up with Lotus Cars of the UK for four consecutive years.