Motor new Word: June 2012

June 12, 2012

5 Million Hybrid and Electric vehicles (EV) by 2020.


China�s State Council has recently developed a green vehicle development plan to subsidise electric car production. As investments in this industry continue to increase, many officials speculate that automobiles will become one of the country�s most exported goods in the future.
So what does this mean for a company like Amsia Motors? It means that the company�s opportunities for expansion in the international market are endless, and it is no longer alone in believing that green vehicles are the best option for the future.
�Although Chinese automobile exports constitute a very small part of the country�s overall trade, there is a large margin for them to grow,� says the Ministry of Commerce�s Department of Mechanic, Electronic and Hi-Tech.
The country is already experiencing growth in the export of automobiles. Citing figures from the China Association of Automobile Manufacturers, chinanews.com reported that China exported a total of 278,948 vehicles from January of this year to April, a 24% increase compared to the figures during the same period in 2011. Time magazine cites a report from J.D. Power that in 2010, Chinese and Indian consumers together bought just under 20 million new passenger vehicles. That's 70 percent more cars than Americans purchased that year. It's not just Asia's booming economies that may explain why this is happening. The Washington Post notes that Americans - especially young, fairly new drivers who once couldn't wait to get behind the wheel and go anywhere and everywhere, and fast - do not regard the automobile as part of the American Dream quite so fervently any more.

                                          BEIJING International Auto Show highlights, 2012.

On another note Amsia Motors, JV Partner's plans to boost export sales nearly five-fold from 300,000 vehicles a year to about 10 percent of the targeted total production by 2016. With much of the country already encouraging the sale of electric vehicles, Amsia Motors is steps away from reaching this goal. 
Late on Wednesday, the Xinhua News Agency reported that the Chinese government has already allocated $949 million to subsidise consumer purchases of fuel-saving vehicles. Beijing has also been encouraging the production and sale of electric vehicles. Recently, it has offered to subsidize up to $9,411 for each vehicle sold. 
A green vehicle development plan approved by the State Council in April set a cumulative output target of 5 million hybrid and electric vehicles (EV) by 2020
While government officials encourage the sale of electric vehicles by subsidizing them, programs in the country are encouraging the sale of electric vehicles by offering them as prizes. 
In a recent real estate sales program competition, a BMW- 1 was awarded to a very patient lucky 27-year old Chinese man who touched the car for 87 hours.  

The Lucky Chinese winner of the BMW-1
The potential for an increase in electrical vehicle sales definitely exists. Even if the sale of automobile exports remains constant over a five year period, international exposure to these products will continue to increase.
With plans underway, Amsia Motors set up new international local agents in several emerging markets. 
It is expected to reach its prime goal to establishing selective markets, leader in the sale of green vehicles and lowest emission vehicles. In addition enhance and facilitate low cost commercial vehicles, agriculture machines, and power generation.
By Nour Saqqa.