China carmakers to tie up for electric vehicle R&D

Shanghai, August 10 (Gasgoo.com) The booming development of new-energy vehicles is bringing Chinese car companies together. The country's top 10 automakers are set to join hands for the research and development (R&D) of electric vehicle (EV) powertrains and components, xinhuanet.com said, citing an industry expert.

The project will be coordinated by the China Association of Automobile Manufacturers (CAAM), which will arrange for the top 10 Chinese automakers to set their intended standards concerning the electric vehicles and related auto-parts. The joint R&D program will help these companies cut EV costs.

The top ten Chinese automakers (by sales) to be involved in this joint R&D program for electric vehicles are SAIC Motor, FAW Group, Dongfeng Motor, Changan Auto, Guangzhou Auto, Beijing Auto, Brilliance Auto, Chery Auto, Sinotruk Group and Jianghuai Auto. 

Global business consulting firm Bain & Company has recently published an electric vehicle survey report, which estimates that electric vehicles' sales will hit 1.5 million units worldwide in the coming few years, with almost 200,000 units in China, making it the world's largest EV market.

Domestic and global automakers are scrambling to launch new electric vehicles in China. Chery Auto has unveiled its first plug-in hybrid the S18, while BYD Auto, backed by billionaire Warren Buffet, plans to launch an all-electric crossover, the e6 in the next few months.

The joint R&D programs for electric vehicles will cut the costs of the Chinese automakers in this field, speed up China's development of EV powertrains and core components, and boost the competitiveness of the country's new-energy vehicles.