Cru­cial role seen for hy­brid ve­hi­cles

China Daily European Weekly - - Comment - The au­thor is chair­man and pres­i­dent of Chi­nese au­tomaker BYD. The views do not nec­es­sar­ily re­flect those of China Daily.

In the tran­si­tion away from com­bus­tion en­gines to­ward elec­tric trans­porta­tion, dual power will be needed to bridge the gap

A sim­i­lar rev­o­lu­tion might be brew­ing among in­dus­trial users, too, as lo­gis­tics op­er­a­tors re­al­ize the ef­fi­ciency and cost sav­ings in­volved with elec­tric de­liv­ery ve­hi­cles. With the size of this fleet grow­ing by 20 per­cent a year and more growth ex­pected for the e-com­merce sec­tor, it’s not unimag­in­able to see mass adop­tion spread­ing to the likes of garbage trucks and con­struc­tion ve­hi­cles.

Just as en­cour­ag­ing is the adop­tion of PHEVs among Chi­nese con­sumers, a trend that saw a 45 per­cent year-on-year in­crease in 2016 and an 87 per­cent year-on-year in­crease in 2017. What be­gan as a nascent in­ter­est in a hand­ful of cities spread to more than 200 cities in just a year.

The pop­u­lar­ity of PHEVs stems from their ex­cel­lent per­for­mance and func­tion­al­ity.

BYD be­lieves PHEVs qual­ify for of­fi­cial sup­port, as they meet the re­quire­ments of the dual-credit pol­icy (av­er­age fuel con­sump­tion points plus out­put of new en­ergy ve­hi­cles), a plan that was im­ple­mented in April that is ex­pected to guide au­to­mo­bile man­u­fac­tur­ers to­ward im­prov­ing the qual­ity of new en­ergy ve­hi­cles and en­sur­ing the en­tire sec­tor’s sus­tain­abil­ity.

The driv­ing range of PHEVs meets mar­ket ex­pec­ta­tions and can po­ten­tially mit­i­gate the blow that the new en­ergy ve­hi­cle sec­tor may re­ceive as of­fi­cial sub­si­dies de­cline. More­over, PHEVs are a boon for power grid com­pa­nies, en­gine fac­to­ries, bat­tery man­u­fac­tur­ers and mo­tor plants.

More im­por­tant, PHEVs act as a tran­si­tion medium as the coun­try builds the charg­ing in­fra­struc­ture nec­es­sary to make elec­tric ve­hi­cles the norm. Put sim­ply, PHEVs are needed to fill the mar­ket gap.

In Europe, sales of new en­ergy ve­hi­cles reached 259,000 last year. The ra­tio of pure elec­tric to PHEVs was close to 1-to-1, even with small pro­por­tions of ve­hi­cles in A0 (sub­com­pact) and A00 (smaller) classes. Sales in the United States were 195,200, with 53 per­cent be­ing pure elec­tric and 47 per­cent be­ing PHEV, with A class (com­pact) ve­hi­cles ac­count­ing for at least 92 per­cent.

Sales of PHEVs in China were in­flu­enced by poli­cies. With China en­ter­ing the post-sub­sidy era, as poli­cies are tight­ened to de­crease sub­si­dies, and with the im­pact of the dual-credit pol­icy, mar­ket de­mand is ex­pected to play a ma­jor role in de­vel­op­ment of new en­ergy ve­hi­cles.

PHEVs ac­count for roughly 18 per­cent of China’s new en­ergy ve­hi­cle mar­ket, with pure elec­tric ve­hi­cles (in­clud­ing A00 class) mak­ing up the rest. If we ex­clude A00 ve­hi­cles from the pure elec­tric seg­ment, how­ever, it leaves only ve­hi­cles of A0 class or above, of which PHEVs ac­count for 47 per­cent. We ex­clude A00 ve­hi­cles as, based on the growth trend of tra­di­tional com­bus­tion en­gine ve­hi­cles, their pro­por­tion will be very small. There­fore, we can con­clude that PHEVs re­main the main­stream of global con­sumer ve­hi­cle de­vel­op­ment.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.