Monday, February 27, 2012

MIIT of China Planning For 500,000 New Energy Vehicles Hard to Achieve

On February 22, the Ministry of Industry and Information Technology officially announced the "12th Five-Year Plan" on the development of new materials industry. MIIT expected that by the year 2015 the total production and sales of new energy vehicles would reach more than 500,000, energy power battery module 150 gigawatts / year.

However, the industry insiders believe that it is not easy to achieve the goal of 500 000 New Energy Vehicles Planning by the Ministry of Industry and Information Technology. Cui Dong-shu, the Deputy Secretary-General of CPCA told reporters, according to the current production and sales situation, it is hard to achieve this goal without promotion of local governments.

The data from the China Association of Automobile Manufacturers show that domestic production and sales of new energy vehicles in 2011 car companies have improved significantly, but the total amount is still small. According to statistics available, the annual production and sales of last year were 8368 and 8159 respectively, both were less than ten thousand.

It is said that by the end of year 2011, the actual operation number of new energy vehicles of the demonstration city was about 15,000, compared with the goal of 25000 there is a big gap. In November 2011 four ministries issued a document to promote the development of the industry via the introduction of new energy vehicle demonstration cities elimination mechanism. Forced by political pressure, the enthusiasm of the promotion of new energy around warmed up rapidly.

However, in the contrary of the local governments' strong support via procurement, ordinary consumers are not keen on the new energy vehicles. Chief researcher of Samsung Economic Research Institute Liu Si-Yang, said that the new energy vehicles in China faces a crucial turning point in China. The efforts to support for new energy vehicles has exceeded that in developed countries, however, in addition to government procurement, very few of the Chinese purchase electric vehicles for own use.

It is also said that the three core technologies of new energy vehicles - motor, electronic control and battery technology accumulation are behind Japan, the United States and other countries, and the purpose of China's demonstration cities is for publicity and experimental purposes, currently the focus is on research and development of new energy vehicles rather than industrialization.

Electric Vehicles Branch of the Society of Automotive Engineers Director, and Automotive Safety and Energy National Laboratory Deputy Director, Chen Quan-Shi, also pointed out that the reason for China's new energy automotive industry gap with foreign countries is that most of the state-owned enterprises concern the assessment indicators. 

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