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Business / Auto China

Future looks bright for electric cars in China

By Lyu Chang (China Daily) Updated: 2015-03-10 07:42

Fluctuating gasoline prices, clean energy push set to spur demand in domestic market, reports Lyu Chang.

Future looks bright for electric cars in China

A new electric car is on show in Beijing. The future looks bright for electric cars in China amid rapidly fluctuating gasoline prices and huge investments by the government to promote use of clean energy. [Provided to China Daily]

The future looks bright for electric cars in China amid rapidly fluctuating gasoline prices and huge investments by the government to promote use of clean energy, industry sources said on Monday.

However, inadequate battery technologies and the long charging time continue to be major detriments for the rapid growth of electric cars in China, they said, adding that it was important for Chinese battery makers to spread wings in overseas markets to upgrade their battery technologies.

Tianneng Group, the biggest supplier of batteries for low-speed electric vehicles in China, said it plans to put in more efforts to expand in overseas markets by not only selling more products, but also developing its lithium-ion battery technologies, hoping that it would play a key role in boosting the growth of the domestic electric car market.

Zhang Tianren, chairman of the battery manufacturer in East China's Zhejiang province, said Tianneng is likely to take a controlling stake or at least make an investment in a battery company in Germany.

"The reason why we zeroed in on German companies for deeper cooperation is because they are strong in research and development capabilities, especially in the automotive industry," he said.

Germany has pledged to make itself a hub for battery production with massive investment in research and development. The country also has a dense and modern transportation infrastructure, creating a huge demand for electric bicycles and vehicles.

"Even during the financial crisis, Germany's battery industry was in rapid growth," said Zhang, also a member of the National Committee of the Chinese People's Political Consultative Conference. "An electric bike can sell at a price as high as 120,000 yuan ($19,200), making the battery industry a potential market for growth."

Though a number of battery companies are on Zhang's shopping list, the timeline for such deals still remains unknown as the road ahead might be bumpy.

Zhang said the biggest hurdle for an overseas takeover in battery industry is how to manage the research and development costs.

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