BYD, Chery treat green car subsidy with calm mind
- Source: Global Times
- [16:50 December 08 2010]
- Comments
China launched a two-year programme on green car subsidy on June 2, while most Chinese auto manufacturers treated the favorable policy with a calm mind.
The program will start this year in Shanghai, Hangzhou, Changchun, Shenzhen and Hefei.
According to the program, those who buy electric vehicles will have a deduction in price of 3,000 yuan ($440) per kilowatt hour of battery power, or up to a maximum 50,000 yuan ($7,320) for plug-in hybrid cars and up to 60,000 yuan ($8,800) for pure electric cars. The subsidy will go to auto makers, and the amount will then be deducted from the car prices.
However, industry insiders think that besides price, consumers are more likely to consider cost performance. Subsidy indeed, will help consumers know more about the products, but it is high quality the convincing factor.
Without mature techniques like traditional autos, the new energy car has no price advantage. In addition, more charging stations are needed to support private use.
BYD, a Shenzhen-based company, is set to produce only 1,000 units of the cars this year, said Wang Jianjun, press spokesperson of BYD.
Wang admitted the subsidy policy can boost the research and development of new energy vehicles and may promote its commercial progress, which favors the auto manufacturers.
However, Wang is concerned that price is only one of the factors to push the industry forward, for supporting facilities and credibility also matter in the process.
Chery, another Chinese auto giant, will stick to its previous production schedule for a rapid and stable development of new energy cars.
Yuan Tao, deputy manager of Chery, said that, although the timely programme extends favorable policies from public service to private use, it's not easy for consumers to accept fresh models.
