FAW has to cut cost before launching Besturn hybrid

Shanghai, May 12 (Gasgoo.com) China's FAW unveils plans to launch its Besturn B70HEV before the end of 2009, but the automaker said it has to dramatically cut costs before putting the model into volume production.

The Changchun-based automaker said the B70HEV is the first strong hybrid model developed by a Chinese automaker and it has taken the automaker 16 months to make it.

"Though it delivers super performance, the B70HEV carries a cost that is triple the base Besturn model," claimed Zhao Ziliang, senior engineer of Electric Vehicle Project Team of FAW.

Zhao said the high cost is the main barrier to accelerated development of hybrid-electric vehicle technology in China. There are also other obstacles including the lack of qualified hybrid parts manufacturers in China, poor consumer understanding about hybrids, lack of policies and so on.

However, with the fuel price hike and the fact that China may stop levying taxes on hybrid-powered vehicles, the market for this type of new energy vehicles is promising, auto industry insider says.