Manufacturing News

Local brands dominate environmentally-friendly and new energy auto markets in China

Sales of Chinese-brand vehicles with 1.6-liter engines and below accounted for over 80 percent of total Chinese-brand vehicle sales, according to the 2009 China automotive industry annual report.

In order to promote energy-saving and environmentally-friendly vehicle sales, China has gradually adopted a series of incentive policies such as the reduction or exemption of vehicle purchase tax and "automobiles going to the countryside."

"These preferential policies have made more consumers favor low-emission vehicles, and Chinese-brand vehicles mostly have 1.6-liter engines and below. Moreover, consumers of low-emission vehicles are generally purchasing their first cars, so rigid demand is quite strong," said Xiong Chuanlin, deputy secretary-general of the China Association of Automobile Manufacturers.

In December last year, BYD F3DM plug-in hybrid cars successfully entered the market in Shenzhen, marking the debut of the world's first commercialized plug-in hybrid car model. "In the second half, we will expand its market in Shenzhen. Sales of this new electric car model will mainly target individual consumers," said Yang Zhao, director of the Public Relations Department of BYD Auto Sales Company.

At the beginning of this year, the Chery A5 BSG hybrid, China's first BSG hybrid car model, was officially put on the market, reflecting the independent domestic implementation of this sort of energy-saving technology by Chinese-brand vehicle makers. At present, Chery A5 BSG mild hybrid cars have entered the mass production phase.

In addition, Beijing Foton Cummins Engine Company Limited (BFCEC) has launched Euro IV hybrid passenger buses, becoming China's first automaker to commercialize new energy vehicles. Since the start of this year, it has gradually received new hybrid passenger bus orders from regions such as Taiwan, Guangzhou, Shandong, Zhejiang and Tianjin. China Auto Company has established a special new energy vehicle company, which plans to meet the sales and output targets of 150,000 units in 2014, and reach 500,000 units in 2020.

Chinese-brand vehicle makers may also be able to overtake their international rivals amid a new round of competitions. Sun Gang, chief editor from Motor Trend magazine, said that in the new-energy vehicle sector, there is a relatively small gap between Chinese-brand vehicles and the international makers, and that the Chinese will possibly be able to overtake their rivals as latecomers. If Chinese-brand vehicle makers can achieve a competitive edge during this round of research and development, it will undoubtedly enhance the market status of Chinese-made vehicles globally.

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