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Review of the ‘Beijing Motor Show 2010’

Review of the ‘Beijing Motor Show 2010’

Numerous EV displays; ‘eco-cars’ surge to the forefront

　The ‘Beijing Motor Show 2010’ (officially named ‘2010 Beijing International Automotive Exhibition (“Auto China 2010”)’ was held from April 23 through May 2. The stand-out feature of this motor show was the sheer number of electrically-powered vehicles on display, particularly PHEVs (Plug-in Hybrid Electric Vehicles) and EVs (Electric Vehicles) from various companies including Chinese automotive manufacturers. The usual displays of concept cars at the exhibition were accompanied specifically by real displays of new vehicle models for which mass production is scheduled to begin within the next year or two, as well as cutaway models and technology displays for these vehicles. The 2010 Motor Show imparted a sense that steady progress will continue to be made in the Chinese market to promote electrically-powered vehicles, as well as to popularize EVs to the extent that they become a standard fixture on Chinese streets.

Casting aside the stereotype that ‘developed countries demand environmentally-friendly cars, while developing countries demand compact cars.’

　Until now automotive manufacturers from various countries adapted their marketing messages and products for display to suit the local tastes and circumstances of the region in which the motor show was to be held. Exhibitions in developed countries would reveal models with the latest environmental technologies. In the meantime, exhibitions held in developing countries emphasized the appeal of larger, luxury vehicles for the well-heeled upper-class, while low-priced, compact cars were promoted to the middle-class. However, it is no longer possible to apply this simple stereotype to the Chinese market. At the Beijing Motor Show, manufacturers were unanimous in their efforts to show off their environmentally-friendly vehicles.

　Last year, China recorded sales of 13.64 million new vehicles, making it the globe’s largest automotive market. Furthermore, sales in China for the January-March quarter increased by an additional 72% on the same period in the previous year to reach approximately 4.6 million units. If this rapid pace is sustained for the rest of the year, total sales for 2010 will reach 17 million vehicles. Accordingly, the dual issues of securing a stable energy supply and reducing environmental impact are extremely important to China and cannot be ignored. At the most recent Beijing Motor Show, various automotive manufacturers exhibited electrically-powered vehicles and EVs, providing a glimpse of the steady preparations that are being made in China towards the promotion of environmentally-friendly vehicles (‘eco-cars.’)

Chinese manufacturers are focusing their energies on PHEVs and EVs

　Exhibitions from Chinese manufacturers were of particular interest, due to their proactive displays of electrically-powered vehicles such as hybrids, PHEVs and EVs (see Figure 1). For example, FAW Group Corporation, a company that has formed joint ventures with various other foreign automotive companies including Toyota Motor Corporation and Volkswagen, had five independently-developed electrically-powered vehicle models on display (1 x HEV [Hybrid Electric Vehicle], 1 x PHEV, 2 x EVs and 1 x FCV [Fuel Cell Vehicle]), while Geely Automobile exhibited seven electrically-powered vehicle models (2 x HEVs, 2 x PHEVs and 3 x EVs). In particular, the exhibits of PHEVs and EVs from Chinese automotive manufacturers were especially noticeable, being the areas in which these manufacturers are focusing most of their energies in terms of the development of electrically-powered vehicles. Beijing Automobile Works Co., Ltd. (BAW), which exhibited 4 electrically-powered vehicles at the motor show, will concentrate future development in this area solely on EVs. Chery Automobile Co. Ltd. has announced that together with US firm, ‘Better Place,’ it will co-develop an EV that employs a battery-exchange system. As for the HEVs that were on display, the degree to which they were electrically-powered was limited to features such as reducing engine idling and recuperating the surplus energy generated by a decelerating vehicle for use in motor assist functions. These HEVs are currently at the stage of mass production, and sales will begin from the latter half of 2010 to 2011 (see Figure 2).

　The schedule for Chinese manufacturers to launch their EVs in the future will be carried out across small scale demonstration experiments. BYD has thus far delivered 50 of its EVs for use as taxis in Shenzhen City (see Figure 3). At the end of 2010, Beijing Automobile Works Co., Ltd. will produce several units of an EV with an independently-developed battery exchange system, to be trialed in demonstration experiments with the Beijing government (see Figure 4). BMW joint venture partner, Brilliance Auto (Brilliance China Automotive Holdings Limited), plans to use its EV vans as airport shuttle buses in Liaoning Province from the beginning of 2011 (see Figure 5). JAC Motors will proceed with production of 500 units of its serial PHEV (range extender) from the end of 2010 to the beginning of 2011 (see Figure 6).

　All manufacturers are adopting a prudent stance when it comes to determining the timing for mass production of EVs, as this is dependent upon both government policy and the government’s plans to build and maintain infrastructure.

　Certain issues still remain that have to be resolved if EVs are to spread in popularity, such as the problem of economic feasibility of EVs compared to current internal combustion engine (ICE) vehicles. Infrastructure, such as the construction of recharging facilities, is also indispensable. These matters require backing by government policy. The presence of central and regional government influence could be felt behind each company’s display of electrically-powered vehicles at the event, with the governments’ awareness of the needs to securing a stable energy supply related to anticipated future industrial development related as well as their intention to promote the automotive industry taking opportunities around electrically-powered vehicle manufacturing.

A succession of foreign automotive manufacturers also declare they are serious about promoting ‘eco-cars’

　Foreign automotive manufacturers were also proactive in their displays of environmentally-friendly vehicles. In stark contrast, exhibitions from most automotive manufacturers at the Guangzhou Motor Show held in November just last year were almost exclusively centered around gasoline-powered vehicles, with the exception of only a handful of companies. The scale of the Guangzhou Motor Show is comparable to that of the Beijing Motor Show and the Shanghai Motor Show, which are held in alternate years. (Click here for more information about the Guangzhou Motor Show). However, at the recent Beijing Motor Show, Japanese and European automotive manufacturers in particular laid out the electrically-powered vehicles, such as HEVs and EVs, that they had displayed at motor shows held in advanced nation cities such as Tokyo, Frankfurt and Geneva, and furthermore, declared their intentions to prepare to launch these electrically-powered vehicles in the Chinese market within the next few years.

　Toyota Motor Corporation is now proceeding with plans to launch its ‘New model Prius’ in the Chinese market, and has also revealed that it plans to introduce its ‘Prius Plug-in Hybrid’ model on a trial basis as soon as possible. Nissan Motor Co., Ltd. will commence trial runs of its ‘Leaf’ model in conjunction with the Wuhan City government in 2011. Honda Motor Co., Ltd. will launch sales of its ‘Insight’ and ‘CR-Z’ model vehicles in China in 2012. BMW has revealed that it will conduct a trial run using 50 of its 'MINI E’ model vehicles at the end of 2010, and that it will also launch an electrically-powered vehicle based on its ‘1 series’ model, to be known as ‘Active-E,’ in 2011 (see Figure 7). Daimler AG will begin demonstration experiments of its ‘Smart ED’ in China at the end of 2010. The Audi AG exhibition included the ‘A8 Hybrid,’ which is scheduled for mass production in 2011, and the ‘e-tron’ electrically-powered vehicle, which the company plans to sell from 2012 (see Figure 8).

World’s first look at Ford’s new compact car for big cities, unveiled in China

　In addition to electrically-powered vehicles, there was another trend at the Beijing Motor Show that became vividly apparent: compact cars. Ford revealed its ‘Start Concept’ model to the world for the first time at the Beijing Motor Show (see Figure 9). The Start Concept is a 3-door hatchback model vehicle, whose use is envisaged for larger urban cities. This vehicle has a three-cylinder, 1.0 liter gasoline-powered engine with power equivalent to a 1.6 liter engine, but has CO₂ emissions of just 100g/km or less. General Motors Corporation’s (GM) display included the ‘Sail’ hatchback model (1.4 liter engine with displacement of 1.2), a car independently-developed by Shanghai GM (Shanghai General Motors Co., Ltd.), and the ‘New Spark’ (1.2 liter engine with displacement of 1.0), its global strategy compact car (see Figure 10). Nissan exhibited its ‘new model March,’ for which mass production in China is planned for the latter half of 2010.