A new policy that will influence every aspect of the auto industry is now under discussion. General Manager of Chery New Energy Company, Yuan Tao, said Thursday that relevant authorities are now planning to issue a policy on hybrid vehicle technology, requiring new PCVs to be equipped with the BSG hybrid system for fuel efficiency.
An industry insider from Dongfeng motor confirmed the statement, and said implementation should happen by 2012.
The BSG is a mild hybrid technology that can save about five percent on fuel. Unlike the electric vehicle technology, the BSG is just an innovation of traditional gas-diesel engine and can boost fuel efficiency. Its cost is also relatively low. According to Dongfeng Motor, under mass production, it only costs 1,000 yuan ($147.5) per car to be equipped with the BSG system.
Domestic fuel consumption in 2008 was 540 million tons of gasoline and 520 million tons of diesel. If all the vehicles had been equipped with the BSG system, the annual fuel consumption would have decreased by five million tons.
The Mr. Yuan also said, "Both plug-in and fuel battery technologies belong to electricallization. The traditional engine technology should not be ignored for it will continue to play a leading role in a long time."
Statistic shows that the sales volume of domestic new energy cars in 2009 are 9,800 units, only accounting for one thousandth of the sales of domestic PCVs. Governments of Shenzhen and Tangshan have already drafted an investment plan worth billions of yuan on the popularization of new energy vehicles.
