China: New electric vehicle plan faces obstacles

As it prepares to launch its first new energy vehicle, Jianghuai Automobile Co (JAC) is anticipating uncertain sales of the car, as it faces up to the reality of incomplete infrastructure to welcome the vehicle, including a lack of charging facilities.

The Tojoy EV is due to hit the market later this month at a competitively low price, and 585 orders have already been received.

"The price of 65,000 yuan ($9,768) will not cover our costs in spite of awaited subsidies from the central and local governments," a sales manager with the nation's 10th largest automaker told the Global Times Tuesday on condition of anonymity.

"Low priced electric vehicles will win more buyers if people can drive in a better-equipped city." The Tojoy EV is the cheapest in its field when compared with the Chery Riich EV, which is priced at between 149,800 yuan ($22,509) and 229,800 yuan ($34,530), and the BYD F3DM priced at over 140,000 yuan ($21,037).

Orders received are all from Hefei, the capital city of Anhui Province, where Jianghuai is headquartered. Hefei is one of five pilot cities to test the vehicle's market potential.

The central government announced subsidies of up to 50,000 yuan ($7,513) for each buyer of a plug-in hybrid and 60,000 yuan ($9,016) for fully-electric vehicles. The Hefei city government has offered an additional 10,000 yuan ($1,503) subsidy per car. However, the combination of inexpensive pricing and government subsidies did little to bolster sales. Calls to Jianghuai's spokesperson went unanswered on Tuesday.