(Yicai Global) Oct. 17 -- As China's new energy vehicle market grows ever more crowded, local brands face increasingly strong competition.
"Two major challenges confront the new energy automotive industry. The first is that government subsidies are being cut, and the other is that major multinational companies are very keen on China's new energy market and have exerted great efforts in China." Mr. Xu Heyi, president of Beijing Automotive Group Co. told media.
Mr. Xu believes that, compared with the first ordeal, local brands will undergo more serious trials when multinational companies join China's new energy vehicle market. "I foresee the launch of new energy vehicles in China by major multinationals no later than 2018." He said Beijing Automotive Group will use its core technologies to form a 'hit list' before the formal end of financial subsidies, which is to build good new energy automotive products and an industrial chain, and soundly develop the three systems of "battery, electrical machine and electronic control." At present, Beijing Automotive Group has already set up research and development centers for new energy (including five overseas) to engage in international cooperation with leading companies. Mr. Xu further said the company spends one-third of its annual R&D costs on new energy vehicles, and will further enhance its R&D support.
Official data shows Beijing Automotive Group's new energy company has been the sales champion among new energy vehicles in China for four consecutive years, with 20,100 vehicles sold in 2015, representing annual growth of 366 percent. More than 30,000 vehicles had already sold this year as of Sept. 30.