|
China has aggressively promoted battery electric and plug-in
hybrid cars, including spending billions of dollars in
subsidies, in an effort to cut heavy urban smog and promote
technological innovation in its auto sector.
Xu said battery production costs for Beijing Electric Vehicle
Co, which is backed by the group's listed subsidiary BAIC Motor
Corp <1958.HK>, are dropping by 15-20 percent per year.
Its battery costs have more than halved to 1,500 yuan to 2,000
yuan ($215-$290) per unit in the last three or four years, he
said, and will soon be near 1,000 yuan per unit.
While the central government is phasing out green car subsidies
through 2020, the firm will need government support for only
three more years at most, said Xu, who is a delegate to China's
parliament, on the sidelines of the legislative session that
runs until March 15.
"People are wondering, at the end of 2020 when overall
government financial support will end, will the new energy
vehicle industry fall off a cliff?" Xu said.
"There is no chance that will happen."
China's state-owned regulator has given Beijing EV approval to
allot shares to certain management and technical employees as
part of government moves to introduce mixed ownership to
state-owned firms like Beijing Auto.
(Reporting by Yawen Chen and Jake Spring; Editing by Ruth
Pitchford)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
