Electric vehicles alliance in China

The Electric Vehicle Industry Alliance, which consists of 16 Chinese central state-owned enterprises (SOEs) and is led by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), was founded in Beijing on August 18.

The alliance’s short-term goal is to promote the unification of electric car-related technologies, and its medium and long-term goal is to master the core technology for electric vehicles and build internationally competitive Chinese electric car brands, reported today’s Shanghai Securities News.

Analysts believe that compared to the Union of Electric Vehicle Manufacturers, which is made up of the top 10 Chinese automakers and led by the China Association of Automobile Manufacturers, the Electric Vehicle Industry Alliance, an official organization launched by the SASAC, will play a greater role in promoting collaboration among different companies and integrating the resources of the electric car industry.

The alliance members include automakers China FAW Group, Dongfeng Motor Corporation and Chang’an Automobile Group and 13 central SOEs in related sectors, such as Dongfang Electric Corporation, China South Locomotive and Rolling Stock Corporation, China National Offshore Oil Corporation, China Aerospace Science and Industry Corporation, State Grid Corporation of China, China Petrochemical Corporation and China Southern Power Grid Company.

Chinese central SOEs recently announced one after another that they would take new-energy vehicles as their new business, but they have not cooperated with each other in carrying out this business. Instead, they "fight" separately. For example, the State Grid Corporation of China recently said that it will build 75 electric vehicle charging stations in 27 provinces and municipalities by the end of 2010.

The China Petrochemical Corporation will first make efforts to transform some major gasoline stations and natural gas filling stations in Beijing into integrated service stations where people can buy gasoline, natural gas and electricity for their cars, and then they will build more similar stations throughout the country if everything goes smoothly. In addition, China National Offshore Oil Corporation plans to build charging stations in more than two provincial capitals via joint ventures.

The main purpose of SASAC’s launching the alliance is to concentrate all useful resources on promoting the development of the electric car industry. An insider said that according to the alliance’s plan, total investments in the new-energy vehicle industry from the alliance members will reach 100 billion yuan by 2012.

By People’s Daily Online, english.peopledaily.com.cn