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Electric Cars in China

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In April, those in attendance of the Beijing Auto Show met the announcement of the RMB 369,000 Denza electric car with great enthusiasm.  The Denza, owned by Daimler, is about half the price of its competitor, Tesla.  The problem is, Chinese consumers have expressed concern about whether or not they want to invest in the new Denza.  The number one reason for such concern is the lack of ubiquitous charging stations.  While the company offers to instal a station in the house of each individual consumer, Chinese consumers feel they could do little else besides drive to and from work.

However, Daimler also announced the Denza would be eligible for subsidies of about 30% the cost of the car.  I think this will incentivize consumers to purchase the Denza.  Furthermore, China’s national electrical provider, the State Grid Corporation, had built 400 charging stations in China by the end of 2013.  By 2015, China plans to have 220,000 charging stations nation wide.

The advent of the electric car in China will prove to be very important.  China is responsible for almost a quarter of global greenhouse gas emissions.  The electric car in China could help to cut a large portion of these emissions.

CNN story

Reuters story