New energy vehicles driving into fast lane

• Source: Ce.cn
• [14:10 July 28 2009]
• Comments

Developing energetically the new energy vehicle is the need for China's energy security, environment protection and the great-leap-forward and sustainable development of automobile industry. At the same time, new energy vehicle will also become the new growth point of listed automobile companies.

On June 11th, 2009, the opening date of 11th Chongqing International Auto Industry Fair, Changan declared the formal launch of Jiexun hybrid car, indicating that new energy vehicle will come to ordinary families gradually.

On June 2nd, Dongfeng Motor Group Co., Ltd. purchased the business and relevant assets of its independent brand passenger vehicle by RMB797 million yuan, the important reason for the purchase is Dongfeng's expansion in new energy vehicle field.

Hu Xindong, Investor Relationship Department of Dongfeng Motor Group, said that new energy vehicle production will become an important factor for Dongfeng Motor Corporation Passenger Vehicle Company (DFPV) to attract investment and improve the profitability of listed company. Except for traditional gasoline vehicle production, new energy vehicle shall become an important part of DFPV.

The Plan on Adjusting and Revitalizing the Auto Industry issued on March brought forth requirements on the development of new energy vehicles. Later, all of the top four auto groups in China, namely FAW Group, Saic Group, Dongfeng and Changan, have set new development goals of new energy vehicle in succession. Their common goal is to realize industrialization of new energy vehicle around the year of 2012.

Analysts reckon that hybrid vehicle combines the advantages of pure electric vehicles and gasoline vehicles; it could well satisfy the overall requirement of low emission, low fuel consumption and high price performance. At present, domestic fuel supply is in shortage and environment protection pressure is heavy.

Being conforming to the situation of China, hybrid vehicle is regarded to have a bright prospect in domestic market. Listed new energy vehicle companies, which are good at capturing business opportunities, have already had their own layouts and started the competition with each other.