Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Chinese Version   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Comment Email this story   Print this story
Dongfeng's electric delivery van
 
COMMENT
Pressed to meet EV mandate, automakers bet on electric vans
Yang Jian | 2017/10/13

SHANGHAI -- Two weeks ago, Beijing released the final draft of its carbon credit program. The mandate starts to take effect in 2019, one year later than the original schedule.

Despite the grace period, automakers still need to figure out what kind of electric vehicles they should produce and who would want them. And there is very little time to do so.

Some companies are considering a partial solution, such as selling electric vans to fleet operators such as courier service providers and the post office. More automakers likely will join them. 

A few years ago, several small Chinese automakers introduced electric delivery vans, but none sold well because their technology was second-rate and production capacity was limited.

That began to change this year when three major automakers -- Dongfeng Motor Corp., Changan Automobile and BAIC Motor Group -- jumped into the segment. 

They did so after Beijing announced plans in 2016 to impose a California-style carbon credit trading program to goad automakers to produce more EVs.

Under the program, companies would receive carbon credits by producing and selling EVs. Those who fail to do so would have to buy credits from other companies or pay stiff penalties. 

For Chinese automakers, electric delivery vans look like a pragmatic solution.

First, it is easier to package batteries in a commercial van than a passenger vehicle.

Second, range anxiety shouldn¡¯t be a big problem for fleet operators, who often have specific routes for their vans and know exactly how far they will go. 

Third, it is easy to perform regular maintenance on the EV fleet in their home garage. And lastly, EV vans can easily be recharged at night in the fleet owner¡¯s garage.

This year, production of these trucks has soared. In the first six months, 13,000 electric delivery vans were produced in China, up 91 percent from the same period last year, according to the Ministry of Industry and Information Technology. 

Now other automakers are entering the segment. 

Last month, state-owned Chery Commercial Vehicle Co. signed a joint venture agreement with Roshow Technologies Co. to assemble electric delivery vans in in the east China city of Wuhu.

Likewise, Ford Motor Co. says its commercial truck partnership in Jiangxi will produce electric vans.

When China¡¯s carbon credit program is implemented in 2019, EVs must constitute about 4 percent of an automaker¡¯s annual vehicle production. To make things more difficult, Beijing will phase out EV subsidies by 2020, thus dampening consumer demand for electric cars.

So the commercial truck market is starting to look like the auto industry¡¯s best hope for meeting China¡¯s EV mandate. Pressed for time, more global brands will join their Chinese peers to build electric delivery vans. 

Related Stories
  • EV demand continues to soar
  •     --Published:2017/15/12
     
  • WM Motors to launch Weltmeister EV brand next year
  •     --Published:2017/12/12
     
  • Baidu to help fund Chinese EV start-up WM Motors
  •     --Published:2017/8/12
     
  • China will extend tax rebate to spur EV sales
  •     --Published:2017/5/12
     
  • Faraday Future struggles to raise cash
  •     --Published:2017/5/12
     
  • Tesla forms r&d subsidiary in Beijing
  •     --Published:2017/1/12
     
  • NIO Capital to raise $500 million for auto investments
  •     --Published:2017/1/12
     
  • Why investors search for a Chinese Tesla
  •     --Published:2017/1/12
     
  • SF Motors prepares to pounce on U.S. EV market
  •     --Published:2017/28/11
     
  • Global electrified vehicle sales set record in Q3 behind China
  •     --Published:2017/24/11
     
  • Daimler, BAIC to invest 5 billion yuan for EV output
  •     --Published:2017/21/11
     
  • Toyota plots return to EVs, this time across Asia
  •     --Published:2017/21/11
     
  • China automakers risk huge inventories of unsold EVs
  •     --Published:2017/17/11
     
  • China may issue more EV permits to expand output
  •     --Published:2017/17/11
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    »¦ICP±¸06057291ºÅ