The Chinese government is urging China's domestic carmakers to work jointly to get hybrids and electric vehicles on the market more quickly. The government is eager to ensure its manufacturers can compete with overseas rivals on green technology.
Dong Yang, secretary general of the China Association of Automobile Manufacturers, said some state-owned carmakers agreed this summer, at an internal meeting, to work together on the industrialization of hybrid and electric vehicles (EVs).
"The cooperation could involve the establishment of industrial standard(s) for electric cars as well as joint investment and production," he told reporters at an auto forum in Shanghai, without providing details. Industry analysts said the joint action will help cut engineering costs and risks for green cars.
China is aggressively pushing forward a plan to speed up the development of hybrids and electric vehicles — collectively known as "new-energy vehicles." The government is offering financial subsidies as well as a $1.5 billion investment to help automakers upgrade technologies. In the future, privately owned carmakers may also take part, Dong said.
SAIC Motor, Chang'an Auto Group and BYD Auto, among others, have poured a huge amount of funds into investment and offered various new models of green cars to meet demand. But, compared with Toyota and General Motors, Dong said, China's automakers still lag in core technologies such as electric motors and batteries.
Chen Yilong, chief representative of the United States Automotive Industry Action Group, also suggested China should enhance cooperation with foreign rivals on industry standards for auto parts.
China wants to have 50,000 green vehicles rolling on the street by 2011.
Nine new-energy models have won government approval to begin domestic output, including the F3 dual-mode electric car made by BYD, a battery-turned-car company backed by billionaire Warren Buffett.
Inside Line says: China has its eye on the expected EV juggernaut and wants in.
