R&D challenges for new-energy cars

cctv.com 12-14-2005 12:26

As China faces growing energy demands, the government is promoting electric, hybrid and hydrogen vehicles. But before these wheels start rolling onto city streets, developers face high research and development costs. They must also reshape consumers' purchasing habits. International experts gathered recently at the China Europe International Business School in Shanghai to discuss the road ahead for new energy vehicles in China. Li Zhuangmiao takes a look at their direction.

China's thirty million-odd petrol-driven automobiles suck up nearly half of the country's total oil.

China's demand for outside oil is forecast to rise to two hundred and seventy million metric tons in 2020, and to minimize demand, the country is promoting cars driven by new energies.

But vehicles such as hybrid gas-and-electric cars, which use forty percent less fuel and produce eighty percent less pollution are expensive to create.

Zhang Xiaoyu, Director-General of SOC. Of automotive engineers of China said: "Developing new energy-driven models has been listed as a key state project in the eleventh five year plan from 2006 to 2010. The government now allocates money from the state funds to support the research. There's also a difference in the basic capabilities of manufacturing a new model such as the material, processing technologies and equipment needed."

li Zhuangmiao said: "35,000 new cars hit Shanghai streets in the last five years, and the trend is nationwide. But these conventional models are half the price that a hybrid would cost, which makes winning customers over a big challenge for hybrid automakers."

Prof. Bernd Schmitt, Columbia Business school said: "Consumers often have a very short-term orientation, as we know from research. They often only see the benefits for themselves in terms of using the more environmentally friendly forms of energy. Plus, very often there's no incentive for them to do so. The price for gasoline is acceptable so they go for the bigger cars."

Professor Schmitt says China's retail petrol prices remain relatively low compared to the US or Germany. This discourages the pursuit of alternative fuels.

Public awareness campaigns and high-profile marketing can thus be used to good effect.

Currently, Chinese auto makers such as FAW, Chery and Gili all have their own new energy car projects.

Government officials predict new energy driven models will achieve mass production by the end of this decade and be introduced nationwide from 2020.

Editor:Wang Ping  Source:CCTV.com