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EV projects help promote industrial revolution

Source: The Beijing News | Date: Dec. 7

  • An increasing number of new players from the sectors other than the automotive industry are planning to manufacture vehicles. Last Thursday, LeTV and Aston Martin signed a memorandum of understanding, under which the companies will jointly develop an electric vehicle that will make its debut at Auto Beijing 2016. Meanwhile, traditional automakers are shifting their focus to electric vehicles, with multiple JVs and local automakers unveiling their NEV strategies at the recently concluded Auto Guangzhou 2015.

  • Thanks to regulatory support from the government, China's NEV market developed by leaps and bounds this year, with sales climbing 2.9 times year-on-year to 171,145 units. Although EVs have yet to be popularized in China, many companies have seen opportunities from the sector, thereby investing heavily to develop and produce such cars. SAIC, for example, recently announced that it will invest RMB 20 billion over the next five years to develop and produce NEVs. Meanwhile, non automakers are also trying to muscle into the sector, since China has loosened its control.

  • EV population is expected to reshape the automotive sales and aftersales sectors. Since EVs don't need regular maintenance as traditional cars, the 4S store model can be dropped. Additionally, EV sales won't depend on 4S stores, with e-commerce expected to make an outstanding contribution.