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Hybrid, electric autos in spotlight as China looks to a green future
Aggregated Source: Shanghai Daily: Business

HYBRID and electric models were in the spotlight as the 15th Shanghai International Automobile Industry Exhibition kicked off yesterday.

This was not surprising, given that China, the world's biggest auto market, has just experienced a winter of unprecedented smog amid high vehicle emission levels.

Among the more than 1,300 vehicles on display, 91 were new energy models, including 56 from international firms, making it the first time in the show's history that foreign models outnumbered domestic ones for green exhibits.

Wang Xia, chairman of the Automobile Industry Committee at the China Council for the Promotion of International Trade, said figures show that new energy cars are no longer only an eco-friendly concept touted by Chinese carmakers, but, rather, a substantial business opportunity recognized by market players from all over the world amid increasing environmental awareness.

Of special concern are sports utility vehicles which often conjure up image of being gas guzzlers. Volkswagen presented a global model of its hybrid SUV CrossBlue Coupe and China's GAC unveiled the deep hybrid SUV Trumpchi GA5.

Global collaboration

The most notable evidence of the growing social importance of green vehicles in China is perhaps the fact that they took center stage at the stands of premium car brands, whose customers hardly need to worry about rising fuel prices.

Among luxury green cars making their China debut were Mercedes-Benz' SLS AMG Electric Drive and Lexus' hybrid LF-CC concept car. Porsche made the new Panamera S E-Hybrid the centerpiece of its show appearance.

Another trend in the green business is that the development and production of electric cars and supporting technologies is shifting to more of a global collaboration model.

The auto show has on display many green accomplishments achieved jointly by Chinese and foreign carmakers, which include e-Lavida, the purely electric sedan developed by Volkswagen and its Chinese partner SAIC, a "twin-engined" concept car by Toyota equipped with its Chinese-developed hybrid powertrain, and the latest high-voltage safety technology for electric vehicles by Denza, the first new energy joint-venture brand in China, co-owned by China's BYD and Daimler.

More China-only car brands will come to the market with a special focus on sustainable mobility. A pure electric concept car exhibited at GAC Toyota's booth offers a preview of their co-owned brand yet to be launched.

"While automakers are making tremendous efforts to develop their technological expertise, a growing level of global collaboration efforts are expected between OEMs, suppliers and other innovative companies to maximize their collective knowledge and resources," said Thomas McGuckin, auto leader of audit, tax advisory firm PwC Asia Pacific. "In China, we also expect to see collaborative efforts accelerate as standards are defined."

Following this trend, China may establish its green dominance by 2020 though Japan is still seen as the current leader by the majority, according to a survey conducted by the firm among 200 participants from 34 countries representing the automotive, utilities, energy, technology, government, finance and education sectors.

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