Total investments in EV R&D from 2011 to 2015 predicted to reach 46b yuan

Gasgoo.com (Shanghai November 1) - A survey by the Society of Automotive Engineers of China have predicted that electric vehicle research investments from over 100 automobile manufacturers from 2011 to 2015 will total near 46 billion yuan ($7.25b), Caijing reported today. The prediction was made by Hou Fushen, head of SAE-China's technology department, at the floor of the LMTIF forum in Beijing this weekend. The forum was held by the China National Chemical Information Center to discuss lithium battery materials and technology.

In 2010 alone, 3.2 billion yuan ($485.45m) was invested in vehicle research in China, constituting 57 percent of the total 5.6 billion yuan ($849.54m) invested in the electric vehicle supply chain. However, according to Mr. Hou, that 5.6 billion yuan is far from enough and doesn't compare with the amount any single multinational EV manufacturer would invest in one year. 

"As far as passenger cars are concerned, electric vehicles will be key, while extended range, plug-in [and other] hybrids will play a support role," Mr. Hou said. He predicts that production costs for low-speed electric vehicles will be around 30,000 and 80,000 yuan ($4,729-$12,612), while costs for EV sedans would range around 150,000 and 200,000 yuan ($23,648-$31,531). Costs for plug-in electrics would be higher still.

Liu Jun, analyst at Essence Securities, believes that EV growth will be led by commercial vehicles, due to the number of bus EVs to sedans (114 to 41) and the lower charging capabilities and infrastructure requirements, as well as easier management guidelines, for commercial vehicles.

Growth in the EV segment will aid enterprises specializing in lithium battery, rare-earth materials, permanent magnetic technology and charging stations.