SAIC, China’s No. 1 Carmaker, to Launch Series of Hybrid Cars
Money Morning Staff Reports
SAIC Motor Co. Ltd., China’s largest carmaker and the partner of both General Motors Corp. (NYSE: GM) and Volkswagen AG (OTC ADR: VLKAY) in that fast-growing Asian country, plans to launch a series of hybrid and electric vehicles by 2012 – part of a move by China’s carmakers to meet the growing market demand for “new-energy vehicles.”
SAIC said its plans for 2010 include the introduction of a hybrid Roewe 750 sedan. The new technology could improve fuel effiency by 20% over the existing non-green model of the same sedan. SAIC’s “blueprint” for new energy vehicles was unveiled this week, according to a report by ShanghaiDaily.com.
Another plug-in hybrid version of the Roewe 550 mid-class sedan that could slash fuel consumption by 50% is due to hit the market by 2012, when SAIC’s self-developed fleet of electric vehicles will start being marketed.
SAIC is partnering with GM and VW on these new-energy vehicles and says its investment on this new category of alternative autos will rise to nearly $900 million (6 billion yuan) because of its focus on hybrid models, and on cars that rely solely on electric power.
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As China’s economy has grown in both scale and sophistication, concerns about energy use and the environment have advanced, as well – stoking demand for energy-efficient cars and trucks. China’s automakers have already invested millions in these new transportation technologies, and Chinese carmakers have pushed for mass-production to begin in order to meet this escalation in demand.
Challenges and obstacles abound. Alternative-energy vehicles cost a lot more, and they require a national service-and-refueling “infrastructure” to be able to operate. That infrastructure doesn’t exist in China, right now.
Despite these problems, however, China’s government wants to 60,000 new-energy vehicles – including plug-in electric and plug-in hybrid cars – on the country’s highways streets by 2012.
SAIC has reportedly inked a deal with the Shanghai city government to provide roughly 1,000 new-energy vehicles – including all-electric, fuel cell and hybrids – for the 2010 World Expo.
SAIC has already unveiled several “green” cars over the past couple of years, including a VW Passat Lingyu – a car developed specifically for the Chinese market – and a hybrid Buick LaCrosse sedan (called the Eco-Hybrid).
China’s Chery Automobile Co. Ltd. also said it would launch two hybrid models this year after a pure electric car rolled off the assembly line in February.
According to ShanghaiDaily, China has granted production permits to five models, including BYD Co. Ltd.’s F3 dual-mode electric car, Chongqing Changan Automobile Co. Ltd.’s Jiexun-HEV hybrid and Toyota Motor Corp.’s (NYSE ADR: TM) Prius hybrid, which has battled perceptions that its price is much higher than hybrid models made by rival carmakers.
News and Related Story Links:
- ShanghaiDaily.com:
SAIC to unveil new Hybrid Vehicles. - AutoBlogGreen.com:
Shanghai 2009: Roewe 750 Hybrid and EV. - Shanghai 2010 World Expo:
Official Web Site. - Edmunds.com:
China Raises the Green Flag as Buick LaCrosse Eco-Hybrid Debuts. - EngineeringTV.com:
BYD Dual-Mode Vehicles. - DanceWithTheShadows.com:
Jiexun-HEV hybrid. - Money Morning View From China Series (2009):
Is China Detroit’s Lifeline? - Money Morning View From China Series (2009):
While the Rest of the World is Stuck in Reverse, the China Auto Market Zooms Ahead. - Money Morning View From China Series (2008):
The View From China: Despite the Auto Industry’s Pedal-to-the-Metal Growth, a Safety Play May Offer the Safest Play. - The China Post:
In hybrid price war, new Prius battles Insight
