What does the perfect electric vehicle look like in China? It must go far and travel anywhere, without breaking the bank
- Chinese car buyers, relative newcomers since 2000 when it comes to private ownership, are notoriously price sensitive and brand disloyal.
- That means NEVs will have to offer value for money, and provide a good, convincing case for buyers to eschew the time-tested internal combustion engine (ICE) for the new technology
This final instalment of a three-part series on new energy vehicles (NEVs) looks at what constitutes the perfect electric car in China, comprising a balance between sticker price and driving range, battery size and charging infrastructure. The first instalment on rural markets is here, and the second part on battery makers is here.
Tim Gan, who works for a Chinese state-owned financial institution in Shanghai, did not think twice when he heard that harsh restrictions were about to kick in on November 2 to wean the megacity of 25 million people off petroleum guzzling cars that run on internal combustion engines.
He plans to replace his trusty Honda Civic with a Roewe eRX5 sports-utility vehicle made by the city’s hometown carmaker SAIC Motor, with a free number plate thrown in. The license entitles him to drive unfettered anywhere in China’s premier commercial hub, even the elevated highways that criss-cross the city, in the process saving him valuable time during rush hour, as well as 90,000 yuan (US$13,450) on the plate.
“The new rules force me to buy a new energy vehicle (NEV) if I still want to drive,” said Gan. “The government’s policies to support NEVs are working well. The market is teeming with so many options, and the fierce competition is whetting my appetite.”
Free number plates and unrestricted access are among the bag of goodies being offered by local authorities all over China to spur the conversion to electrification, part of the nation’s goal to achieve carbon neutrality by 2060. The government has divvied out 300 billion in cash subsidies since 2009, extending an exemption on a 10 per cent purchase tax by two years until 2022.
