An electric car saves expenses on gas, reduces the number of repairs needed over the life of the vehicle and reduces carbon emissions. These types of cars work well in areas with heavy smog and pollution due to car exhaust, especially in countries such as China, India and the United States.
A Chinese automaker plans to roll out a new electric car by 2016. Lu Qun, a former executive for Jeep Cherokee in Beijing, wants to build a battery-powered sports car that's cheaper than European gas-powered vehicles. His CH-Auto Technology Co. made cars for Zhejiang Geely Holding Group, Jiangling Motors Corp. and Dongfeng Motor Group.
Lu expects rival companies to start marketing their vehicles to Chinese customers soon. Aston Martin, Tesla and Toyota plan to expand sales in China, a country home to many wealthy business people who have extra money to spend on new cars. Plus, the government has promised to address the price of imported gasoline and air pollution in major cities. Battery-powered vehicles represent one solution to both dilemmas.
At least two other Chinese automobile manufacturers have an electric car design in the works, which makes Lu's design even more lucrative if he can be the first executive to present a Chinese-made electric vehicle to the public. Sales of such cars reached 18,000 units in 2014, more than four times higher than 2013 sales figures. All of those cars were imports.
American automaker Ford plans to create an electric car similar to Tesla's Model S, which makes overseas competition even more fierce. Tesla's move to open its patents to other manufacturers means the electric vehicle business stands to gain more traction into mainstream markets in years to come. Tesla's huge gigafactory plant may also benefit with increased electric vehicle sales, and Elon Musk may even export his batteries to China in the near future.
Chinese company BYD sold 21,000 electric or plug-in hybrids in 2014, including Tesla cars. The American electric car manufacturer sold 32,733 vehicles across the world in 2014, and Asia created 15 percent of Tesla's sales. One of the main challenges facing electric vehicles in China remains the high cost of these vehicles. However, more competition in the market only serves to reduce prices. Electric vehicles made in China also stand to be cheaper due to less reliance on imported technology.
Lu wants to start on the high end and get wealthy citizens to purchase his Event sports car. Fast, sleek cars are popular with wealthy business owners in China. Once the brand becomes more established, Lu wants to make less expensive electric vehicles for the masses. The same strategy worked for Tesla in the United States.
The target price is $115,000 for the Event, which remains lower than comparable European sports cars in China. The two-seat Event model boasts a range of 155 miles and can reach 60 miles per hour in 4.6 seconds. The battery recharges within six hours from empty. CH Auto's goal is to produce 500,000 electric vehicles per year.
A new Chinese electric car simply makes sense. Lu has a huge customer base, and Chinese pride may push aside imports when the government supports a Chinese automaker rather than European, American or Japanese models.
Photo courtesy of ponsulak at FreeDigitalPhotos.net
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