A total of 16 State-owned enterprises (SOEs) under the direct supervision of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) formed an electrical vehicle industry association Wednesday in Beijing.
The association consists not only of automakers China FAW Group Corporation, Dongfeng Motor Corporation and China Changan Automobile Group, but also of enterprises that have businesses in batteries and charging.
The association will help set new standards for technology and help bolster research and development facilities.
Du Fangci, assistant secretary general of the China Association of Auto Manufacturers, acknowledged the significance of technology sharing, but he also questioned feasibility of the association.
"New energy vehicles, new to all automakers worldwide, can't be developed and operated commercially successfully just by the auto industry. But I wonder if SASAC can balance the interests among the member enterprises, which is key to keeping these firms on the same path," Du told the Global Times.
Li Shengmao, senior analyst with China Investment Consulting, expressed similar concerns. "As companies' contributions are different to technologies developed jointly, SASAC should make clear the ownership of the intellectual property," Li said.
Du said that healthy development of the industry depends on both governmental guidance and optimizing resources as determined by the market. "The government shouldn't control both. But it looks like that is what SASAC, in this case, is doing," said Du.
Zhong Shi, editor-in-chief of China Automotive Review, also had little optimism for the association.
"Such an association should include all firms strong in the area rather than only SOEs. Though lots of foreign firms launched technology agreements, there is no precedent of successful technology exchange in China's auto industry," Zhong told the Global Times.
Daimler set up a joint venture to develop electric cars with Chinese automaker BYD. And GM has stepped up its involvement with China's SAIC Motor. The two will develop small engines and transmissions together.
It is reported the Ministry of Information and Industry Commission has finished drafting the development plan for energy efficient and new energy vehicles and will submit it to the State Council this month. In the plan, the country will in-vest 100 billion yuan ($14.72 billion) to support the industry in the next 10 years.
