Mon, March 08, 2010
Beijing authorities have rolled out a bold plan to start running thousands of energy-saving, electric-powered vehicles later this year. But experts and consumers say the local market may not be ready for the drastic change from fuel to electricity.
The capital, which has a staggering 4.13 million vehicles citywide, has been anxious to participate in China's booming auto manufacturing industry. China became the world's top auto producer and consumer last year, making 9.8 million cars, and surpassing the United States.
Officials have said the central government will draw up favorable policies for car makers and authorities that encourage the production of hybrid or electric-powered vehicles.
"Electric-powered vehicles are the next growth opportunity for China's carmakers and electricity generators. The central government hopes a few cities will become the testing grounds before the model can be passed on to more cities in the country," Li Yizhong, minister of Industry and Information Technology, told reporters during the ongoing National People's Congress, China's annual legislative session.
The government's decision made an impression on Beijing deputies at the meeting, many of whom are decision-makers in the capital.
Ma Zonglin, chairman of the North China Grid Co Ltd, a major grid covering Beijing, told the session that his grid is ready to open 450 recharge stations this year for the upcoming surge in electric-powered cars in the capital.
"Our grid is revamping the system to make it more efficient and power-saving," the chairman told reporters on Saturday. "The recharge stations for upgraded automobiles will be located in more than 80 areas citywide, and we are planning to expand it in 2011."
Zhang Gong, director of the municipal commission of reform and development, the city's economic planner, also said the authorities are in discussions with more car producers to set up plants for electric-powered vehicles in Beijing.
The commission has revealed that it hopes about 15,000 electric-powered vehicles will be operating in Beijing this year. Most of them will be buses and sanitation vehicles and the authorities are hoping for more private car owners to "go electric".
Li Yunwei, chairman of the Beijing car owners' society, said he welcomed the green plan, but doubted whether car owners will be willing to pay more for an electric-powered vehicle. An electric-powered sedan on the local market is usually 30 percent more expensive than a conventional sedan.
"It is a brilliant idea to allow Beijing to march first to this environmental-friendly industry and I think most car owners love the idea," Li told METRO yesterday. "But until the government imposes more favorable policies or even provides special funding to car buyers, most of them are not willing to switch from fuel to electricity."
Professor Lin Cheng, an automobile researcher with the Beijing Institute of Technology, said he is also doubtful about Beijing's rush toward the new industry.
"Considering the impact of the Toyota recall incident, Beijing should be more careful with this relatively new technology in car making," Lin said.
"It is a good business opportunity and the central government is in favor of it, but car makers need more time to work out the best technology to produce electric-powered cars. And don't forget, consumers are looking for affordable and reliable vehicles," he added.
