Gasgoo.com (Shanghai September 16) - 20 years ago, one of the biggest problems Chinese drivers faced was a lack of gas stations. Before leaving their house, they would have to make sure they had a barrel of gas with them. Now, drivers of pure electric vehicles are facing a similar problem. The lack of charging infrastructure remains one of the biggest obstacles hindering the development of the fledgling EV industry.
Due to the lack of charging infrastructure, many maintain that plug-in hybrids have much better sales potential in the near short-term. Commenting on the issue, BYD CEO Wang Chuanfu stated that concerns over not being able to find a charging station are one of the biggest reasons why first-time buyers shy away from pure electrics. As such, he believes plug-in hybrid models are much more likely to win over new sales.
The government has already implemented legislation exempting buyers of new energy vehicles from paying the vehicle purchase tax. This legislation is just many in a long line of policies aimed at promoting rapid development of the new energy vehicle market. Several manufacturers, such as JAC and Dongfeng Nissan Venucia, have responded with product releases of new energy vehicle models.
However industry analysts are cautious to remind everyone about the problems with the lack of sufficient charging infrastructure in the country. This has pushed new energy vehicle buyers away from pure electrics and towards plug-in hybrids.
According to statistics, the majority of plug-in hybrid purchases made in the first half of 2014 were made by ordinary buyers. Sales figures from BYD show that 2014 sales of the plug-in hybrid version of its E6 are over four times that of the pure electric version. Mr. Wang explains this phenomenon: "The decision to purchase a pure electric vehicles is already not an issue of price. Rather, buyers are concerned about driving distances."
Even in developed markets like the US, where most households have two or three vehicles, plug-in hybrid sales are on the rise. According to sales statistics, pure electric vehicle sales in the US grew 15.6 percent from approximately 22,000 units in 2013 to 25,000 units in 2014. By comparison, plug-in hybrid vehicle sales increased from approximately 18,300 units in 2013 to over 29,000 units the following year, achieving a sales growth rate about four times higher than those of pure electrics.
