Automakers Hope to Tap Chinese Electric Car Market

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Many companies see China as having big potential for electric cars. Now, domestic automakers are starting to tap this market. But production is still on a small scale and the industry faces challenges. Here's more.

Chinese automakers Chery and BYD are gearing up to establish themselves in China's green vehicle market.

The Chinese green auto market is thought to have huge potential. But, domestic manufacturers will have to compete internationally for market share. Companies will also have to persuade CCP authorities to develop charging infrastructure for electric vehicles.

Despite not having the infrastructure some electric vehicles have already been launched. Chery was displaying its Riich M1 Electric Vehicle at the Shanghai Auto Show. The car has been launched in selected cities in China.

Rival Chinese automaker BYD is taking a different approach. The company, backed by U.S. investor Warren Buffett, launched some hybrid and electric vehicles last year to be used as taxis.

Yet some analysts believe the answer to really opening up the market is in persuading private individuals to go green.

[Michael Dunne, Independent Auto Analyst]:
"For it (electric cars) to take off, it's got to be private individuals. The consumer has to believe that an electric car is worth more money and will run as far as a gasoline-powered car. We're not there yet anywhere in the world. So why should China lead in that? It's going to take years to convince the Chinese consumer that electric is better than a practical gasoline engine car."

Foreign auto-makers have yet to sell pure electric cars in China. For now they're waiting for authorities to give clear regulation on electric vehicles. Japanese companies Honda, Toyota and Nissan represent potential competition should the market take off.

And then there are doubts as to how green an electric car really is in China?

They have to be charged from the mains and China relies on polluting coal power stations for the majority of its electricity.

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