Chinese EV maker Levdeo announces direct subsidies, eyes set on developing EV market

Gasgoo.com (Shanghai August 26) - Chinese electric vehicle manufacturer Levdeo announced that it would be offering direct subsidies of 10 percent to buyers of its vehicles, the Economic Daily reported today. The subsidies will reduce the price of its vehicles to just 29,800 RMB ($4,837). Levdeo has plans to begin mass commercial sales, with buyers able to customize the color and other details of their automobiles online. Experts point out that Levdeo's active stance and forward thinking attitude may allow it take advantage of business opportunities in the still fledgling new energy automobile market.

The Chinese government has recently released a series of policies aimed at boosting new energy vehicle sales, which included tax exemption and subsidies. The policies seem to hint at the new energy vehicle market gaining more popularity, with the pure electric vehicle market specifically looking poised for upcoming developments.

Levdeo President Shu Xin believes that two major factors have limited development of the new energy vehicle industry up until now. First, the amount of funds enterprises have had to invest into research and development work for EV technology, which is still in its infancy, has been limited. Secondly, consumers have had a long time becoming accustomed to new energy vehicle technology. Mr. Shu explains some of the problems facing manufacturers: "How to effectively reduce costs for pure EVs, guarantee driving quality, ensure smooth and convenient charging in an urban environment and offering a technologically satisfying driving experience are all problems that the EV industry needs to resolve in order to reach the next stage of development."

Domestic EV manufacturers, such as Levdeo, ZD and BYD, are all making large investments in order to boost technological expertise, lower costs and increase market presence as they continue to compete with foreign brands. Levdeo reroutes five percent of its annual revenues towards automobile R&D. The manufacturer's unified EV factory, the largest of its kind in the country, has already begun operation; it will be able to manufacture up to 150,000 vehicles a year. Levdeo's iPower battery technology is able to cut the weight of its batteries by over 20 percent and boost driving distance by 18 percent. Its core HES driving system technology can help provide further protection for the vehicle's driver and passengers.

Levdeo and other manufacturers are gaining support from automotive part manufacturers such as LatticePower, which specializes in LED automotive lighting technology. Companies such as LatticePower are outfitting new energy vehicles with the latest technology. LatticePower Board Chairman Wang Min believes that the companies which first take control of the new energy vehicle market will be able to gain the heart of consumers and achieve considerable success.

Mr. Shu summarizes his prospects for the industry: "In the future, manufacturers will have to continue focusing on technological R&D, in order to not only be able to sell EV vehicles at an affordable price, but also to revolutionize the way consumers drive their vehicles."