Chinese leaders have adopted a plan aimed at turning the country into one of the leading producers of hybrid and all-electric vehicles within three years, and making it the world leader in electric cars and buses after that.The goal, which radiates from the very top of the Chinese government, suggests that Detroit’s Big Three, already struggling to stay alive, will face even stiffer foreign competition on the next field of automotive technology than they do today.
Right now Japan leads the world in hybrid vehicles with its Toyota Prius and Honda Insight. General Motor’s Chevy volt, which is expected to go on sale for 2010, is U.S’s major alternative fuel vehicle. The article indicates by 2011, China is planning to produce 500,000 all-electric and hybrid vehicles. By that time, Japan and South Korea together will produce 1.1 million all-electric and hybrid vehicles while the U.S will produce 276,000.
China has the advantage of low labor cost. The article indicated a monthly salary of $600 for a young engineer, which will be a huge comparative advantage over US and Japan car manufacturers. China is also putting a subsidy of $8,800, has a population less accustomed to gasoline vehicle than the west and is planning to build public charging stations in its major cities, which will all help its electric vehicle industry. Public charging stations charge much faster than home charging. This has two advantages: it helps to reduce the problem of range for electric vehicles and it also solves the problem of charging outlet for people living in apartments, which is huge in China.
China’s planned all-electric vehicle will have a top speed of 60 miles per hour and a range of 120 miles between charging.
No comments:
Post a Comment