Auto manufacturers voraciously eye the EV market as Tesla publically releases EV technology

Gasgoo.com (Shanghai June 26) - Competition in the Chinese new energy segment is growing increasingly fierce. In addition to the BMW i series and Tesla Model S, offerings from Audi, Porsche and other multinational manufacturers are entering the fray. This competition has been further spurned on by Tesla's recent announcement that it was relinquishing the exclusive rights to its new energy technology in the name of the greater good.

Earlier this month, Tesla CEO Elon Musk (pictured) announced that his company made the decision to renounce the exclusive rights to its technology in order to promote further development of electric vehicles. Tesla would not raise infringement lawsuits against any party who used any of its technology. Mr. Musk explained that Tesla's competition is not the rise of other electric vehicles, but the continued use of traditional fuel powered vehicles. He hopes that this action will help further development in the industry.

Liu Bo, electric infrastructure and new energy analyst with BOC International, believes that Mr. Musk's decision is a sign that further cooperation is of more help to the development of the EV industry than competition is. At the moment, the combined share held by EVs in the overall automobile market is a tiny 0.3 percent. The decision also helps further Tesla's brand image in the eyes of the public.

"Releasing exclusive rights to technology is definitely good news for the new energy automobile industry," an automobile industry analyst remarked, adding that there is a severe lack of information resources among new energy automobile manufacturers. By helping fill this gap, Tesla may help spur the creation of new commercial models that will help increase activity in the market.

On that end, many manufacturers have already begun paying attention to the segment as possessing significant future development potential. Audi, a leader in the traditional automobile industry, has already announced its intent to expand its EV offerings, including future mass production of a pure electric Q8 and the R8 e-tron, the latter of which is due to make its European market launch next year. Audi announced the pure electric Q8 as early as 2012, but due to poor performance shelved the project. Since then, the manufacturer has managed to boost its drive distance from 215 km to 450 km, pegging it as a competitor to Tesla's Model X.

Rival German manufacturer BMW also has plans for new energy vehicles to make up 20 percent to 30 percent of its future product line up. The manufacturer has previously announced its plans to release the new i3 and i8 in China by this September. BMW has also announced cooperation plans with the State Grid Shanghai Municipal Electric Power Company to build over 50 charging stations in the country to lay the groundwork for future EV sales strategies.

Japanese manufacturers, which have performed strongly in the hybrid market, are not to be left out of the competition. Earlier this month, Nissan announced the release of its second pure electric car, the e-NV200, which it will first sell in Europe and later bring to Japan. Nissan Chief Planning Officer Andy Palmer also revealed that the manufacturer has plans to introduce four new zero-carbon EVs in early 2017.