Apr 272012

Auto China 2012 Exhibition – Green Cars

The Auto China 2012 Exhibition in Beijing is due to see the introduction of a range of economical green cars in an attempt to steer the Chinese public towards investing in more environmentally-friendly vehicles. As many as 120 new models are to be showcased by domestic and international manufacturers, including BMW, Honda and Toyota.

China Heavily Invest in Green

Although the market for green cars is challenging due to the high cost of manufacturing pushing retail prices up, the Chinese government is determined to get five million clean energy cars sold by 2020. €11 billion (USD$14 billion/GBP £9 Billion) is to be invested in developing the technology to make this happen, and China intends to rely less on oil and more on eco-friendly energy.  Namrita Chow of HIS Global Insight said, “International car makers are all trying to appease the government by showing that they are indeed bringing electrical vehicles to China”, and this exhibition, ending on May 2nd, looks set to prove it.”

Nissan Leaf - Electric Car Available in United Kingdom

Nissan Leaf – Electric Car Available in United Kingdom

Pilot Schemes Launched to Promote Green Cars

Consumers can look forward to the huge range of electric and hybrid vehicles becoming available to them, and the government has launched pilot schemes around the country to try and promote the use of these types of cars.

Green Car – High Manufacturing Costs

Unfortunately, the push for a future for electrical vehicles will be a long and difficult one, with predicted sales figures not looking optimistic. The high cost of manufacturing for electric and hybrid cars pushes the prices up, and consumers need to be convinced that it’s worth spending the extra money on the new technology. Until further developments have been made, the price of green cars will not be low enough to compete with traditional vehicles. According to McKinsey consultants, there are currently only between 10,000 and 20,000 green cars in use by the public.

Mass Producing Green Vehicles Would Reduce Costs

Manufacturers are not currently able to mass produce eco-vehicles in China due to the uncertainty of the market and the lack of technological development. But Beijing hopes to change that by convincing foreign manufacturers to go into partnership with the Chinese to transfer and develop the technology and create a bright future for the world of electric cars. Volkswagen has already announced plans to manufacture eco-cars in China in 2013, despite predictions of slow sales for the first five years. By 2018, VW aims to sell at least 10,000 green cars in China; however, this number seems insignificant when compared to the 2.6 million traditional cars they sold there last year alone.

Green Market take off in 2020

The market for eco-cars is a slow and frustrating one for manufacturers, but once a wider variety of models is available, things should pick up. Analysts predict that the market won’t take off until 2020, as eco-cars are simply not currently able to compete with traditional cars, and, with the technology being so new, consumers have little confidence and are less likely to part with their cash. Only with commitment, determination and continued investment from the Chinese government and foreign manufacturers combined, will a future of green cars be feasible.

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