A surging local automobile market it is not only escalating competition between car manufacturers, it is providing a grounds for manufacturers to explore international market expansion. As Beijing Benz Co. leads in this new direction, other manufacturers including Amsia Motors prepare to follow. Last week, Beijing Benz Automobile Co., the joint venture between Mercedes-Benz and Beijing Automobile group, handed over 35 long-wheelbase E-Class sedans to Daimler AG for sale in South America. The vehicle, tailored for Chinese customers who prefer a spacious back seat, gained the interest of new customers who appreciate the model and expect similar models to enter their market in the near future.
The Ministry of Finance has recently made a new commitment to promote alternate fuel vehicles by providing subsidies for their production and purchase. According to the Ministry, electric cars are the most viable, most promising option: lower fuel costs, lower emissions, and lower production costs compared to alternate fuel vehicles.
Many of China’s consumers share in the government’s interest to promote the electric car. Now that next generation automobile manufacturers have developed a method of using battery swap stations for longer trips in which drivers can simply replace a depleted battery with a charged battery rather than wait for it to recharge, concerns about the safety, weight, and recharge speed of the lithium ion batteries has become less prevalent. “The country will need to invest 5 billion to 10 billion Yuan by 2020 to build necessary recharging stations,” says Mckinsey in a report by Mckinsey & company.
Currently, Beijing Benz Automobile Co. is expanding its production of C-Class sedans and GLK SUV’s; its China plant manufacturers await the shipment of three new Mercedes-Benz compact models for local production starting 2013. The company builds its 3 series and 5 series in China, and its annual output is expected to surpass 300,000 in the next few years.
Meanwhile, in China’s 13 largest cities- Beijing, Shanghai, Chongqing, Zhangchun, Dalian, Hangzhou, Jinan, Wuhan, Shenzhen, Hefei, Kunming, and Nanchang- a fast-increasing number of vehicles on the road has increased concerns about the safety of the environment, and the need for alternate fuel vehicles. In response, government officials and local automobile manufacturers are turning to electric cars and electric car technologies for a more efficient way to reduce excessive vehicle emissions and better safeguard the environment.The Ministry of Finance has recently made a new commitment to promote alternate fuel vehicles by providing subsidies for their production and purchase. According to the Ministry, electric cars are the most viable, most promising option: lower fuel costs, lower emissions, and lower production costs compared to alternate fuel vehicles.
Many of China’s consumers share in the government’s interest to promote the electric car. Now that next generation automobile manufacturers have developed a method of using battery swap stations for longer trips in which drivers can simply replace a depleted battery with a charged battery rather than wait for it to recharge, concerns about the safety, weight, and recharge speed of the lithium ion batteries has become less prevalent. “The country will need to invest 5 billion to 10 billion Yuan by 2020 to build necessary recharging stations,” says Mckinsey in a report by Mckinsey & company.
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