China’s Guangdong to invest 15.3 billion yuan in new-energy vehicles

China’s Guangdong Province is stepping hard on the accelerator to put new-energy vehicles on its roads. It plans to invest 15.3 billion yuan (about US$2.4 billion) to carry out 12 strategic projects on new-energy vehicles and auto parts, some of which will be completed by 2012. 

The province’s 12th Five-Year Development Plan for Strategic Emerging Industries, spanning 2011 to 2015, calls for the new-energy vehicle manufacturing industry to focus on the development of plug-in hybrid, pure-electric and hybrid buses and passenger cars, and encourages the development of special-purpose electric and LNG vehicles. The provincial government will also help new-energy vehicle manufacturers and related projects to obtain national approvals and meet the standards to enter the relevant industries. 

The five-year plan also reveals that Guangdong’s output of traction batteries for electric vehicles accounts for 40% of China’s total. Some hybrid, pure-electric and LNG buses have already gone into mass production in the province.

Wuzhoulong Motor’s pure electric buses fro Hong Kong and Macau is packaged with eight-year warranty on battery life (photo credit: Shenzhen Wuzhoulong Motors)

Shenzhen-based BYD Auto has taken the lead in the electric vehicle industry in China, with Shenzhen City now a pure electric-car industry base. Shenzhen plans to put 2,000 new-energy vehicles on its streets this year, including 1,000 new-energy buses, 500 pure electric taxis and 500 new-energy service vehicles. The number of publicly- and privately-owned new-energy vehicles on its streets already exceeds 3,000, the highest of any city in China.

Mayor Xu Qin said at the National People’s Congress and the Chinese People’s Political Consultative Conference – China’s two most important gatherings of its top government officials – that by 2015, Shenzhen will replace more than half its fuel-powered buses with new-energy ones. BYD Auto and Shenzhen Wuzhoulong Motors will continue to strengthen research, development and production of pure electric cars.

Wuzhoulong recently released several new pure-electric buses for Hong Kong and Macau markets, with an eight-year warranty on battery life, the longest warranty period offered by the company. It also delivered its new generation of pure-electric buses to its Hong Kong customer.

The 1,000 electric buses Shenzhen intends to put on its roads this year will be manufactured by BYD Auto and Shenzhen Wuzhoulong Motors, says Lu Xiangzhen, director of Shenzhen National Development and Reform Committee. The 500 electric taxis will be supplied by BYD Auto. 

Push for pure electric

According to Lu, the number of privately-owned new-energy vehicles in Shenzhen has surpassed 600, yet nearly 90% of them are plug-in hybrids. The city hopes to make a breakthrough this year in getting the general populace to start buying and driving pure electrics. It will also add more than 40 charging stations for buses and build two to three charging stations for taxis.

Shenzhen is applying for more government subsidies for the purchase of new-energy cars, and is considering preferential policies for the use of such vehicles, including reducing road tolls and parking fees, with hopes that cutting down the costs of ownership will promote purchase.

Furthermore, Shenzhen will release the plan for the construction of the Pingshan National New-Energy Vehicles Industrial Park in the first half of the year. Construction of the 11.5 sq km park will start during the 12th Five-Year period. The park targets an annual output value of 50 billion yuan and a production capacity of 100,000 new-energy vehicles by 2015. Upon completion, it will house facilities for vehicle production, key parts production, key material production, R&D testing, logistics and trading zones, and talent training. BYD Auto and Shenzhen Wuzhoulong Motors will both locate their manufacturing facilities in the park.

Another district in Guangdong, the Gaoming district of Foshan, also recently released its plan to promote new-energy vehicles. This year, the district wants to have 370 new-energy vehicles on its roads, comprising 98 natural gas-powered buses and taxis, 50 electric taxis and 222 electric vehicles for agricultural and other purposes. In addition, Gaoming will build three gas stations, two charging stations, 400 charging stands and one new-energy vehicle service outlet this year. Next year, Gaoming plans to have another 230 new-energy vehicles on the road.  – Nanjing Shanglong Communications

View all contents of May 2012 issue
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