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China's Auto Industry
Special> China's Auto Industry
UPDATED: June 21, 2009 NO. 25 JUNE 25, 2009
Green Wheels
A domestic car maker takes the lead in China's new energy auto industry
By LIU XINLIAN
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After Zotye's annual production of conventional autos hit 50,000 units in 2008, Wu began to focus on electric vehicles. Fortunately, his green dream was echoed by a group of electric vehicle experts. With many years of experience in working with auto factories in the United States and Canada, some of these technicians are battery specialists, while others are electric engine experts.

Since it started producing cars in 2006, Zotye has achieved two firsts in China's new energy auto industry. In November 2008, its electric vehicle became the first of its kind to receive an auto manufacturing and sales permit from the Ministry of Industry and Information Technology. On March 15, 2009, it formally registered its Zotye 2008 model in Hangzhou, Zhejiang Province, where the company is headquartered. The model has been running for almost 20,000 km without any major breakdowns or technology failures, Wu said.

National support

As of this March, Zotye's electric vehicle has been able to run continuously for 300 km on a single charge. For Wu, charging stations still remain a big challenge for the industrialization of electric vehicles. As of now, drivers must plug into home electrical sockets to recharge.

For a sudden power off or instant charge, plugging into a 360-volt industrial power socket for 20 minutes, the car can be charged to 80 percent of its full capacity. But in China, such a charging station is no more than a demonstration project. In Beijing, a large-scale charging station was built exclusively for the 50 electric-powered Olympic demonstration buses.

"The government should support the infrastructure construction for electric vehicles, since it is impossible for individual producers to afford it," said Chen Liquan, a researcher at the Laboratory of Solid State Ionics under the Chinese Academy of Sciences.

According to Auto Business Review, a Beijing-based auto magazine, more than 40 car makers have started new energy auto projects, and 27 car manufacturers have already introduced 76 types of new energy vehicles. But the fact remains that China still lacks a standard commercial electric vehicle.

On April 20, Zotye introduced its electric auto at the annual Shanghai International Automobile Industrial Exhibition with a price tag of 119,800 yuan ($17,618). Compared to similar models equipped with traditional internal combustion engines, Zotye's car with the electric engine costs twice the price.

"Half of the cost is spent on the battery," Wu said. He said he is hopeful about the country's powerful support for the development of new energy vehicles. The Central Government will offer public buyers a 60,000-yuan ($8,823) subsidy for each electric public passenger vehicle and commercial vehicle, and 500,000 yuan ($73,529) for each public bus longer than 10 meters, according to a circular issued in January by the Ministry of Finance and the Ministry of Science and Technology.

"By the time individual car buyers are entitled to a 60,000-yuan subsidy, I firmly believe that the electric vehicle market will boom," Wu said.

In the meantime, the government is pinning its hopes on electric vehicles to pick up the sagging automotive industry. "Vibrantly pushing forward the development of new energy autos is in accordance with China's actual conditions and with the new direction of the world auto industry as well," said Miao Wei, Vice Minister of Industry and Information Technology.

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