Multinational Auto Companies In China To Speed Up The Overall Electric Strategy

- Dec 05, 2017 -

After China's Ministry of Industry and Information officially released the "Double Credits" policy, Guangzhou Auto Show has become the scene where many multinational car companies have released strategic plans for their new energy vehicles in China: VW announced the investment of 10 billion euros in the future and nearly 40 new energy vehicles in China in the next 8 years; Daimler announced that it will invest 5 billion yuan in the Chinese market to increase the R & D and production of electric vehicles and power batteries. Honda will launch its first electric vehicle exclusively for the Chinese market in 2018, and Toyota will also set itself on the Chinese market in 2020 Launched the first pure electric vehicle model ...... From the intensively released new energy vehicle strategy, it can be seen that the multinational automobile enterprises' electricization strategy in China is accelerating and their competition in new energy vehicles is increasingly intensified.


"Double integration" powerful

At present, China has become the world's largest market for new energy vehicles. The sales volume of new energy vehicles this year is expected to exceed 700,000. China will also formally implement the "double integration" policy from April 1, 2018. According to policy requirements, all automobile manufacturers and auto importers in China who sell more than 30,000 cars each year must meet the integral policy of average fuel value points and new energy car points; the proportion of new energy car points in 2019 and 2020 Respectively 10%, 12%. Under the double stimulation of the market and policies, the attitude of the major multinational car companies before they changed their position began to speed up the pace of electrification in China.

Recently, the Volkswagen Group's supervisory board approved a five-year spending plan to accelerate the goal of the auto maker's desire to become a leader in electric vehicles. By 2022, Volkswagen will invest more than 34 billion euros in electric vehicles, autonomous driving and mobile travel services. Mullen, CEO of Volkswagen Group, said in a statement: "The investment plan is approved by the board of supervisors, laying the groundwork for us to become the world's largest maker of electric vehicles by 2025." Volkswagen had previously announced that by 2030 the group's About 300 models will provide electric version. The Chinese market is an important part of Volkswagen's strategy for new energy vehicles. The group plans to invest 10 billion euros in 2025 to develop and manufacture pure electric vehicles and plug-in hybrid vehicles in China.

Daimler also announced at the Guangzhou Motor Show that it plans to invest 5 billion yuan in China to expand the production of electric vehicles and power batteries to promote the Mercedes-Benz and Smart brands to meet the "double points" policy requirements. Daimler Greater China head Tang Shikai said the investment was previously part of Daimler announced plans to invest 10 billion euros in new energy vehicles in the global market. In addition to continuing cooperation with Beiqi, Daimler also plans to expand its cooperation with BYD to launch more products under the Teng brand.


no action is late

Why are these multinational car companies are accelerating their new energy vehicles in the Chinese market planning? As the world's largest market for new energy vehicles, China's own-brand car makers have benefited from the policy push. Earlier in this field, they can seize market opportunities. Most multinational corporations and their joint ventures in China were mostly waiting to see Stage, slow action. Undoubtedly, the official launch of the "double-point" policy is like a sword hanging over them. Under the pressure of compliance, they had to speed up their motorization.

Toyota Motor Corporation announced at the Guangzhou Auto Show that it will launch electric vehicles in China starting from 2020 and consider selling electric vehicles developed by its Chinese partners and branded Toyota. Tohmatsu, chairman of Toyota Motor (China) Investment Co., Ltd., said at a press conference at Guangzhou Auto Show: "In order to fully respond to the growing demand for electric vehicles in the Chinese market, we are considering the supply of electric vehicles to Toyota by a joint venture partner in China. We will also be involved in developing every aspect of new energy vehicles, including plug-in hybrids and fuel cell vehicles. "

It is worth mentioning that the launch of electric vehicles in China in 2020 marks the first time Toyota has returned to the market after the production of the RAV4 electric vehicle was discontinued in 2014. In September, Toyota CEO Toyota Akio pointed out that the company entered the EV market somewhat too late. Before the Chinese government released the "double-point" policy, competitors started to seize the market of new-energy vehicles in China.


seek new joint venture partners

With the official launch of the "Double Credits" policy, multinational car companies may deepen their cooperation with their Chinese counterparts to jointly build electric cars for the Chinese market or find new partners to set up joint ventures in new energy vehicles. It can be said that the policy of "double integration" has made China's new energy vehicle market enter a new era of joint ventures: Volkswagen joined hands with JAC; Daimler signed a new framework agreement with Beiqi; Ford joined hands with Zhongtai; Renault- Nissan Alliance and Dongfeng Motor Co., Ltd. established Easyjet New Energy Vehicle Co., Ltd. (eGT) ......

Take the public as an example. From now till the next seven to eight years, it plans to launch nearly 40 locally-produced new-energy vehicles at the Chinese Communist Party. Heizmann, president and chief executive of Volkswagen Group China, told China.com that most of the 40 cars came from FAW-Volkswagen and SAIC-Volkswagen. The rest were provided by JAC Volkswagen, the third car joint venture in China. . Heizmann said the cooperation between the general public and JAC is smoothly progressing. The first electric vehicle will come out in the first half of next year.

In early November, Ford Motor Company and Zotye announced that they had reached a joint venture agreement to set up a new joint venture, Zhongtai Ford Motor Co., Ltd., each holding 50% of the shares in the joint venture. The new joint venture will create a series of economical pure electric passenger car products using the joint venture's own brands.


window period product outbreak

Ministry of Industry for the car to meet the "double integral" policy requirements set a window period. First of all, the calculation of points for new energy vehicles delayed the implementation of one year from 2019 set a new energy car points ratio requirements. Second, the "double integration" policy clearly stipulates that the negative integral of new energy vehicles generated by passenger vehicle enterprises in 2019 can be offset by the positive integration of new energy vehicles generated in 2020. Insiders said that from now to 2020 more than three years is the traditional car prices to develop new energy vehicles window period.

According to Heizmann, "This adjustment has given window-winning car makers, including Volkswagen, more time to research and develop new energy vehicles. 2019 will be Volkswagen's new energy vehicle year in China and we will have A number of new energy models are available, and the policy window will help us to provide better products by 2019. "

Honda will launch its first electric vehicle exclusively for the Chinese market by 2018, which was jointly developed by Guangzhou Honda, Dongfeng Honda and Honda Giken Technology (China) Co., Ltd. and sold under the brand name of the joint venture. Daimler and Beiqi Group to build the first pure electric model EQC will be put into operation in 2019. Renault-Nissan Alliance and Dongfeng Motor Co., Ltd. set up easy-to-new energy vehicles, is expected to also be produced by 2019 the first electric car. It appears that in the "double integration" policy window, multinational car companies will have their tailored for the Chinese market, electric car products, China's new energy automotive market or usher in a new round of explosive growth.


Source: I love tram network

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