Cars
China invests heavily in fertile green auto ground
(Agencies)
Updated: 2010-04-22 16:19
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BEIJING - Chinese automakers, unscathed by a savage global downturn, are ramping up efforts to get more cleaner, low-emmission vehicles on the roads, counting on the green drive to propel them into the top ranks of the global auto industry.
From leading Chinese auto group SAIC Motor Corp to rising star Geely Automotive Holding, indigenous players will show off a host of new green vehicles at the Beijing autoshow that starts this week, including some futuristic concept models.
"Green energy cars represent sort of gold mine on the horizon that all the companies hope to reach eventually," said Stephen Dyer, principal with A.T. Kearney China. "Almost all the major Chinese manufacturers have on-going development programs."
Big auto groups?such as SAIC, are likely to emerge as winners, industry analysts say, while leading private-sector players, like Warren Buffett-backed BYD will also be a front runner as it pushes into foreign markets.
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Another State-backed heavyweight, Beijing Automotive Industry Holding Co, unveiled its BE701 electric car in November and is building a 2.28 billion yuan production base on the outskirts of the Chinese capital, capable of making 50,000 electric vehicles and twice as many hybrids.
"There is still a technology gap between local and foreign (firms), but this is a relatively level playing field and the Chinese are not that far behind. They have a chance to catch up," said Mervin Guo, a senior analyst with J.D. Power.
Other industry observers cited Daimler's tie with BYD as a recognition of China's growing strength in this field.
"The Daimler-BYD tie is different from those in the early days when local automakers tended to rely heavily on their foreign partners for technologies. They are equal partners," said Chen Liang, an analyst with Huatai Securities.
Besides, both GM and Nissan Motor are on track to import the Volt and Leaf next year, followed by BMW, which will bring its first hybrids for China -- a gasoline-electric BMW X6 and BMW 7 -- later this year.
