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Business / Auto China

Global brands go local for new-energy subsidies

By Li Fangfang (China Daily) Updated: 2014-05-26 07:13

Global brands go local for new-energy subsidies

The locally made Denza by BYD Daimler premiered at the Beijing Auto Show. Photos provided to China Daily

With the current government policy limiting electric vehicle subsidies to locally produced brands, foreign carmakers are turning to localization and innovative business models.

Shenzhen BYD Daimler New Technology Co Ltd - a joint venture between the German giant and China's top electric vehicle maker - announced to receive orders for its all-electric Denza in Beijing on May 17. Eligible for the national subsidy, its price to buyers is 255,000 yuan ($40,800).

The first Denza models will be delivered to customers in October.

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Debuted globally in April at the Beijing Auto Show by BYD Daimler, the Denza also received market entry permission in Shanghai, so enjoys not only national subsidies, but also free license plates.

The venture is now seeking to qualify for subsidies from the Shanghai government to further lower the Denza's price.

Lin Mi, vice-president of BYD Daimler, said that based on BYD's experience in new-energy public transportation, Denza will sell "solutions" to customers including charging facilities.

"As an innovative company building new-energy vehicles, we will also be innovative in marketing and sales strategies, for example a trial on an e-commerce platform," said Lin.

BYD Daimler has already signed an agreement with power and automation technology group ABB for supplying direct-current fast chargers over the next six years that is expected to result in the world's largest fast-charging network for electric vehicles.

The wall-mounted chargers will have a number of innovations designed for user convenience and safety, such as a mobile app that allows cloud-based remote monitoring and control of charging sessions, said the companies.

The chargers will be sold through Denza dealerships along with the vehicles and priced at 10,000 yuan for seven-hour chargers and 20,000 yuan for fast charging units that need only three hours.

"Charging facilities will be one of Denza's competitive edges," said Lin.

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