Poor facilities pulling the plug on electric cars

Unprofitable

While cheap charging has proved popular with drivers, it's created a problem for public utilities and other companies because they're unable to recoup the heavy investment they've plowed into the construction of facilities.

Charging stations built by State Grid Corp have yet to turn a profit, and seven stations operated by its subsidiary in southern China reported a full-year loss of 13 million yuan, according to Chinese Science News on Jan 28.

Sun Fengchun, deputy head of the Beijing Institute of Technology, said the losses are a necessary step in the development of the new sector, and profits will come later down the line when vehicle sales begin to match those of conventional cars.

Tellus Power's Pang said it would take about five to seven years to recover the company's massive investment in the market, while Yu said Tellus would rely on its new-energy vehicle rental service to enhance revenue flow.

Individual automakers, such as Tesla from the US, are also attempting to kick-start the market by providing convenient charging facilities. Tesla, which built the biggest charging network in China - its largest market outside the US - said 90 percent of its buyers in China have charging facilities at home, but it has also built more than 200 "supercharging stations" nationwide to provide quick and efficient charging. Overall, the number of "destination charging poles", which are installed at popular sites such as shopping malls so drivers can recharge their cars while they shop or engage in other activities, will rise to 1,000 by the end of the year, it said.

The cooperation between Tesla and real estate companies has proved beneficial for the companies and motorists, and now other automakers are examining ways to expand the charging network nationwide and further push sales of new-energy vehicles.

Although the process will take time, Yu of Tellus Power said the company is optimistic about the future of green motoring in China: "It will take years to build an improved charging network, but the company is determined to promote these environmentally friendly, efficient vehicles, and push forward the green transport model for the good of the environment and people's health."

Contact the writer at zhengjinran@chinadaily.com.cn