Onlinewsj.com reports that Chinese auto makers BYD Co. and BAIC Motor Co. on Wednesday won approval from Beijing's municipal government to sell electric cars in the city. Shares of BYD, which is partially backed by Warren Buffett, jumped 9.6% in Hong Kong. BYD's all-electric e6 crossover has been sold mainly in the southern Chinese city of Shenzhen, where the company is based. Most of the vehicles operate as taxicabs and buses.
Meanwhile, Switzerland's ABB Ltd. said it would make and market home, wall-mounted, electric-car chargers in China, part of an effort to address a lack of charging stations and other infrastructure necessary if electric cars are to hit China's roads in serious numbers.
Chunyuan Gu, ABB's China chairman and president, said he believed demand for cars and charging equipment will take off after a slow start. "Either you believe or you don't believe," he said. "What's difficult to predict is how fast the volume will come."
China's government wants 500,000 hybrid and electric vehicles on its roads by next year and five million by 2020. But only around 17,600 such vehicles were purchased in China last year, including hybrid and pure-electric cars and buses. It is likely that no more than 50,000 such vehicles are in use in China.
China long has said it wanted to lead the world in developing and selling electric cars, in part to reduce its reliance on oil and improve air quality. Big sections of China again were covered by thick, polluted air this week, in large part because of automotive emissions.
Global automotive companies have been drawn to China's vast potential; the country recorded about 22 million auto sales last year. Electric-car maker Tesla Motors Inc. last month said it would sell its Model S sedan in China starting around $120,000.
Tesla is aiming its car at the luxury segment. But Mr. Gu said government incentives were needed if Beijing wanted to reach the mass market. China in September rolled out an incentive program under which buyers of electric cars can receive up to 60,000 yuan, or about $9,800, in subsidies. Buyers of certain gasoline-electric hybrids can get up to 35,000 yuan. Some local governments also offer incentives.
Building a suitable charging infrastructure also is a must if electrical vehicles are to take off, Mr. Gu said. ABB this month announced a six-year agreement to supply home, wall-mounted fast chargers for Denza cars. Manufactured by a joint venture of BYD and Germany's Daimler AG , the Denza will go on sale this year.
Denza didn't respond to requests for comment.
"I am very confident that once China overcomes all these hurdles, the volumes will increase faster than we can project," Mr. Gu said.
ABB reported a "solid performance" in China for last year, despite "a mixed business climate and market environment." China revenue rose 7.7% to $5.6 billion as the company benefited from the country's greater emphasis on stable economic growth and low-carbon, sustainable development. ABB invested $136 million in China last year.
BYD this week also received approval to sell its plug-in hybrid, the Qin, in Shanghai as part of a trial. The company declined to provide details about plans for rolling out its vehicles in Beijing and Shanghai.
BAIC couldn't be reached for comment.
BYD was a pioneer in developing electric cars in China, but has struggled to win international recognition for its green-vehicle technology.
A Beijing government official said the city would provide a subsidy for the sale of BYD's e6 cars even though they are built in Shenzhen. The official said Beijing aimed to have in place around 1,000 charging units in some 100 stations throughout the city by year-end, up from 20 stations today.
"It was previously mission impossible for ordinary consumers to use BYD's electric cars in Beijing because of the many approvals that needed to be got," said Leping Huang, an analyst at Nomura.
Meanwhile, Switzerland's ABB Ltd. said it would make and market home, wall-mounted, electric-car chargers in China, part of an effort to address a lack of charging stations and other infrastructure necessary if electric cars are to hit China's roads in serious numbers.
Chunyuan Gu, ABB's China chairman and president, said he believed demand for cars and charging equipment will take off after a slow start. "Either you believe or you don't believe," he said. "What's difficult to predict is how fast the volume will come."
China's government wants 500,000 hybrid and electric vehicles on its roads by next year and five million by 2020. But only around 17,600 such vehicles were purchased in China last year, including hybrid and pure-electric cars and buses. It is likely that no more than 50,000 such vehicles are in use in China.
China long has said it wanted to lead the world in developing and selling electric cars, in part to reduce its reliance on oil and improve air quality. Big sections of China again were covered by thick, polluted air this week, in large part because of automotive emissions.
Global automotive companies have been drawn to China's vast potential; the country recorded about 22 million auto sales last year. Electric-car maker Tesla Motors Inc. last month said it would sell its Model S sedan in China starting around $120,000.
Tesla is aiming its car at the luxury segment. But Mr. Gu said government incentives were needed if Beijing wanted to reach the mass market. China in September rolled out an incentive program under which buyers of electric cars can receive up to 60,000 yuan, or about $9,800, in subsidies. Buyers of certain gasoline-electric hybrids can get up to 35,000 yuan. Some local governments also offer incentives.
Building a suitable charging infrastructure also is a must if electrical vehicles are to take off, Mr. Gu said. ABB this month announced a six-year agreement to supply home, wall-mounted fast chargers for Denza cars. Manufactured by a joint venture of BYD and Germany's Daimler AG , the Denza will go on sale this year.
Denza didn't respond to requests for comment.
"I am very confident that once China overcomes all these hurdles, the volumes will increase faster than we can project," Mr. Gu said.
ABB reported a "solid performance" in China for last year, despite "a mixed business climate and market environment." China revenue rose 7.7% to $5.6 billion as the company benefited from the country's greater emphasis on stable economic growth and low-carbon, sustainable development. ABB invested $136 million in China last year.
BYD this week also received approval to sell its plug-in hybrid, the Qin, in Shanghai as part of a trial. The company declined to provide details about plans for rolling out its vehicles in Beijing and Shanghai.
BAIC couldn't be reached for comment.
BYD was a pioneer in developing electric cars in China, but has struggled to win international recognition for its green-vehicle technology.
A Beijing government official said the city would provide a subsidy for the sale of BYD's e6 cars even though they are built in Shenzhen. The official said Beijing aimed to have in place around 1,000 charging units in some 100 stations throughout the city by year-end, up from 20 stations today.
"It was previously mission impossible for ordinary consumers to use BYD's electric cars in Beijing because of the many approvals that needed to be got," said Leping Huang, an analyst at Nomura.
