Published: Mon, April 24, 2017
Business | By Max Garcia

Volvo announces plans to export China-made electric car

Volkswagen plans to launch its first purely electric auto in China next year and 13 new-energy vehicles by 2020.

Volvo will build its first fully electric vehicle in China and the company made this announcement at the Shanghai Auto Show.

DOMESTIC manufacturers launched a host of new models at the Shanghai Auto Show yesterday, aiming to grab market share from better-known foreign brands in the world's biggest vehicle market.

This is published unedited from the PTI feed.

"It's tough for someone with an EV to come and take away market share from SUVs", said Ben Cavender of China Market Research Group.

Another highlight was the number of new-energy vehicles, with 159 models on display this year.

Other Chinese automakers have been gearing up for NEV sales growth through product introductions and producing them in decent volumes.

GM's China business generated about $2 billion in equity income from its joint-venture partnerships previous year, about 16% of its total pretax profit.

Further supporting car-sharing's potential, countless Chinese face significant car-ownership hurdles, including cost, scarce parking and limits on auto use in several major cities.

The Buick Velite 5 will be part of that and it will be manufactured in China. Automakers have warned they may be unable to meet those targets and regulators have suggested they might be reduced or postponed.

Despite the increasing support from Beijing for the EV industry, sales of electric and gas-electic hybrids fell 4.4% in Q1.

Jochem Heizmann, China CEO for Volkswagen, the country's top auto brand, told reporters Tuesday VW was close to cementing a partnership with Chinese car-sharing operator Shouqi serving multiple cities - partly to boost sales of VW electric vehicles.

"That will create a market pull rather than the government forcing action", he said.

Volvo's status is unusual. Our joint venture partners, in particular SAIC, are even more committed to transformation. But Geely chairman Li Shufu has said he wants its Swedish managers to operate independently.

Volvo said in a press statement on Wednesday that its new electric auto will be based on its Compact Modular Architecture (CMA), which is the platform the carmaker is using for its smaller 40-Series vehicles. In applications for plug-in hybrids (PHEV), Schaeffler's P2 hybrid module contributes to a reduction in fuel consumption and has at least 70 percent with an all-electric range of 50 kilometers, claims the company. Regulators are pressing foreign brands to help develop the industry.

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