Friday, July 8, 2011

China Poised to Challenge Global Auto Giants in the Greener Vehicle Market

Under the government"s long-term science and technology plan China is exploring a variety of greener vehicle technologies. In 2006, the Chines government issued a policy directive to encourage the development of small cars with low fuel consumption and low emissions.

China's Chang’an Auto is already mass producing a hybrid vehicle for about $20,000, which is $10,000 less than the Toyota Prius hybrid. Chang’an produced 50,000 Jiexun-HEV hybrid cars in 2010.

China's efficient low emission vehicles are part of its global strategy aimed at the greener global vehicle market. In addition to the growing domestic market, China is increasing exports to developing nations, as well as to the US and Europe.

Inexpensive compact cars like the Chery QQ, and the Geely Panda are selling well domestically. There is also a resurgence of demand for larger sedans in China. These larger models are important to its export strategy. In 2009, 30,000 of the 190,000 Chinese cars were exported.

Geely plans to increase its overseas sales to 1.3 million vehicles annually by 2015, with assembly plants already operating in Russia, Ukraine and Indonesia, and another one planned in Mexico.

Chery, exported 120,000 vehicles in 2009 and has over 20 overseas plants designed to boost sales in Russia, the Middle East, South America and South Africa. The company also signed an agreement to produce compact cars under the Chrysler brand for US and European markets.

The Chinese are positioning themselves to take on the global giants in global sales of greener vehicles.

© 2011, Richard Matthews. All rights reserved.

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