Will Chery’s RMB 3b investment break a world for small-size electric vehicles?

Shanghai May 9th, 2017 Gasgoo-Shijiazhuang Municipal government signed a framework agreement on the alternative energy vehicles’ production base project with Chery at the beginning of May. It’s learned that Chery’s total investment on alternative energy vehicles’ production base in Shijiazhuang would reach RMB 3b for the production of smalls-size electric vehicles.

It’s learned that Hebei, Henan, Shandong and Jiangsu are major provinces for producing and selling low-speed electric vehicles. According to statistical data, about several hundred low-speed electric vehicle companies are gathering in the four provinces with total annual sales volume reaching 1m units. The base attracts many investors, including Chery.

But Chery New Energy is not the only one investor. Just at the end of 2015, BAIC BJEV co-established a factory with a local electric vehicle company. It’s expected that BAIC BJEV would forge the globally largest small-size electric vehicle production base. On January 18th, BAIC BJEV launched the EC180. Just two months after EC180’s launch, Dezhou City conducted rectification on four-wheel low-speed electric vehicles in February to April.

According to Chery, the newly launched Chery eQ1 is out of supply. It’s imperative that the capacity would be expanded. It’s learned that the newly alternative energy vehicle eQ1 uses LFS platform, which would produce many cars even SUV products in the future with the maximum length of 4,600mm and wheelbase of 2,700mm. It’s concluded that apart from small-size vehicles, Arrizo 5ev and Tiggo 3xe would also be produced in Shijiazhuang.

All major auto companies are turning their eyes to small-size electric vehicles since the subsidy on alternative energy vehicles is reduced. The market will be a new growing point in the future.