Green cars to crack US market - ResearchInChina

Date:2008-01-15liaoyan  Text Size:

AS overseas car makers introduce new models with dazzling fanfare, they are starting to see Chinese newcomers take a close look at their own markets.

A record five Chinese car makers, including BYD Automobile Co Ltd, Geely Holding Group and Changfeng Automobile Co Ltd, grouped together to display their 15 models at the North American International Auto Show in Detroit which began yesterday.

In contrast to China's previous approach of offering low-cost models for the cut-throat market in the United States, Chinese car makers are focusing on displaying alternative energy-driven vehicles to meet environmental concerns amid record high oil prices.

Shenzhen-based BYD, making its debut in the world's most competitive market, brought eight models including the F6 mid-to-high class sedan, the F8 hard-top convertible coupe as well as an F6 Dual-Module electric car to a total display space of 300 square meters.

"Most of the attention received was for the eco-friendly F6 DM model and everyone seems to be interested in our timetable for entering the market," Huang Juan, a BYD official told Shanghai Daily yesterday.

The model is powered mostly by BYD's self-developed iron battery which gives it a fuel-saving capacity of up to 70 percent against current generation petrol cars.

"Showing the cars at the Detroit auto show helped us to entice consumers with promising green energy cars for a mature market," Huang said.

Privatelyowned Li Shi Guang Ming is also expected to pull the tarp off its latest electric vehicle called Tang Hua, and three Lithium battery-powered sedans which aim to target the European and US market.

Both Chinese car makers hoped the green technology would help them to build an upper-level brand image with advanced technology before starting sales.

BYD said it expected earliest sales on the US market in 2010.

The F6 DM will be mass produced in the second half of this year in China and it would cost US$4,000 more than a normal F6 sedan, priced from 125,800 yuan (US$17,352).

The mobile phone battery specialist is a relative late comer to the auto industry. It aims to double overseas sales annually over the next three years and will also launch pure electric cars within three years.

Chinese car makers have been actively seeking opportunities on the US market for more profits and rev up struggling domestic sales. Market share of China's self-owned marques shrank to 27 percent in last December from a peak of 30 percent in January.

Industry analysts say there is still long way to go for Chinese car makers to enter the US market due to higher thresholds in emission and safety standards.

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