Auto show highlights new energy vehicles

The latest models exhibited by more than 100 automakers at the ongoing 14th Guangzhou Auto Show reveal that new energy vehicles (NEVs) and smart automotives are gaining momentum in the domestic market, despite cost issues and technical difficulties.

The exhibition halls for new energy vehicles, including plug-in hybrid electric vehicles and fully electric vehicles, were packed with crowds during the opening day of the 10-day auto show in Guangzhou, South China’s Guangdong Province, which kicked off on Friday.

During the show, Germany-based Mercedes-Benz showcased their electric SUV concept, the EQ, while domestic manufacturers Beijing Automobile Works unveiled their C11-1 all-electric vehicle.

Ni Kai, the president and CEO of Mercedes-Benz Beijing Sales Service Co, said the company is “going all-in” with the EQ series, because they believe the NEVs market in China is growing stronger.

China’s NEVs market has already witnessed explosive development in the wake of various favorable policies, especially the subsidies for NEVs, Jia Xinguang, an expert at the China Automobile Dealers Association, told the Global Times on Friday.

Yet “plagued with scandals involving subsidies cheats,” the government has drafted a credit policy, where automakers earn credits based on the type of vehicles they produce, and those failing to meet the minimum credit requirements lose the ability to produce NEVs. “The new policy, to be released in 2017, will curb auto manufacturers’ participation in the industry soon.”