China Efforts

Central firms to buy electric car technology

By Hu Yang (chinadaily.com.cn)
Updated: 2010-08-27 17:48

China's central enterprises are stepping up efforts to take over companies that have technology advantages in developing green vehicles or auto parts, the Shanghai Securities News reported Friday.

Guided by China's State-owned assets regulator, 16 State-owned companies formed an alliance to accelerate the development of electric vehicles, covering operations of electric drive, battery and charging and services.

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At present, central enterprises do not enjoy advantages in key technical strengths or innovation ability, which are important in new industries like energy-efficient cars, industry veterans said. The only way to catch up is to buy new energy companies or attract technical talents, they added.

The China National Offshore Oil Corp, one of the 16 central enterprises, plans to invest 5 billion yuan ($735 million) in battery maker Tianjin Lishen.

The alliance, formed on Aug 18, is gearing up to invest 100 billion yuan ($14.7 billion) in electric vehicles by 2012, according to earlier media reports.