Smart connectivity drives auto tyros looking for China edge
Future Mobility seeks to cash in on demand for intelligent cars with new plant investments
China-based automakers are racing to build new premium intelligent electric car plants in a bid to cash in on the country’s burgeoning demand for smart connected vehicles.
Future Mobility Corp, a Chinese electric-vehicle company and a new entrant to the industry, inked a framework memo with Nanjing Economic and Technological Development Zone in Jiangsu province on Thursday, and announced an investment plan of 11.6 billion yuan ($1.7 billion) for a new production plant with a 300,000-unit annual production capacity.
The first phase of the plant, designed to manufacture 150,000 cars annually, would start trial production of mid-size premium fullyelectric smart sport utility vehicles in 2019.
The new SUV range is slated to be launched in China at a suggested starting price of 300,000 yuan.
“The FMC plant in Nanjing should be a high quality plant fully capable of producing our premium positioned products. The plant was designed in line with both the ‘Made in China 2025’ strategy and the Industry 4.0 standard,” Carsten Breitfeld, CEO and co-founder of FMC, said at the news conference.
When asked about the company’s right to produce vehicles in the country, he said: “We are on schedule to obtain production approval for new energy vehicles by 2019. It’s (a) challenging (schedule), but we are quite confident and ready.”
China will only issue new energy vehicle production permits to companies that meet a range of criteria in critical fields, including research and development, production and testing.
Jia Xinguang, a senior analyst with the China Automobile Dealers Association, said in an interview with China Daily that it takes years of production experience, research and development competency, mature production techniques and tens of thousands of kilometers of road tests before China will issue companies with production permits for electric vehicles.
“Usually a new energy vehicle maker procures batteries from Japanese and South Korean suppliers, as companies in these countries control the knowhow necessary to produce them,” he said.
“But a carmaker would be capable of developing electric controlling systems.”
Breitfeld said FMC has developed core parts for its own products, including the power train and software controlling unit. The company is accelerating its research and development this year for its planned production increase, and aims to unveil its driving concept car in 2018.
“The history of R&D and production of prototypes also contributed to the manufacturing experience that is essential if we are to meet the criteria necessary for obtaining a production permit. In addition, our talented team has abundant project experience as they have worked with both Tesla and BMW,” Breitfeld said.
Daniel Kirchert, Future Mobility’s chief operating officer, said: “FMC is a China-based automaker with extensive international expertise, and will be producing cars firstly for the Chinese market, then for markets all over the world, including the United States and Europe.
“We are working on a meaningful project that works to make a Chinaoriginated premium car with global influence.”
FMC is the third emerging new energy carmaker to begin construction work on a new plant in recent times, following LeEco, Singulato Motors.
Chinese internet company LeEco launched construction of its car plant in Zhejiang province in December.
The first phase of the plant covers 133 hectares and will involve an eventual total investment of 11 billion yuan. The project is designed to have an annual production capacity of 400,000 cars and will cost the company 20 billion yuan.
Little-known Chinese electric car startup Singulato Motors will begin construction of its new industrial park in Anhui province this year.
The park will receive investment of 8 billion yuan with the aim of achieving an annual production capacity of 200,000 units.
The company plans to complete the first phase of the park by 2018, but will work jointly on trial production runs with a Chinese conventional automaker from late 2017.