Chinese Carmakers Join Forces on Mega EV Project
Some of the biggest automotive players in China though seem to have realized there's only one way they can keep up the pace: together. This is why no less than 16 of them, including big names like Dongfeng Motors, Chang'an Automobile and FAW have decided to set up a joint group.
The main goal of the new alliance is to tap into the emerging electric vehicle market. Being the first such joint project in China, the alliance is also the biggest, with an estimated $15 billion to be pored over the next 10 year into the development of fuel-efficient cars. 500,000 such vehicles, including hybrids and electric vehicles, will hit the Chinese streets over the next three years.
"The participation of state-owned companies will definitely power the industry's development," Merchants Securities analyst Wang Liusheng was quoted as saying by Inside Line. "They could cooperate with each other and improve efficiency."
The alliance announced this week made by the 16 companies bears the name The Association of the Electric Vehicle Industry. It is governed by the Assets Supervision and Administration Commission. It includes, alongside manufacturers, the State Grid Corporation and the China National Petroleum Corporation.