In spite of pollution, hybrids struggle to gain a foothold in China
While new car sales have stagnated or shrunk in most of the established markets in recent years, one of the big exceptions has been China. Sales there spiked 22 percent, up to 8.8 million last year and might go over 10 million units in 2008. Of course that has also contributed to the choking air pollution in cities like Beijing and Shanghai. Nonetheless Chinese car buyers have yet to migrate toward hybrid vehicles. Apparently the emissions benefits are insufficient incentive to overcome the huge price premium. To date most of the hybrids available in the Chinese market have been imports like the Prius and Civic hybrid. Unfortunately, high tariffs on imported cars and components mean that a Prius costs $15,000 more in China than it does elsewhere and the government isn't offering tax breaks like they do here to offset the difference. Chinese domestic producers like BYD are just now starting to get into the hybrid arena and GM has recently introduced a version of their popular Chinese market Buick LaCrosse with the belt-alternator-starter mild hybrid system. That less expensive system will likely prove more popular than the Prius which has only sold 2,500 in two years on the market.
[Source: BusinessWeek]
Reader Comments (Page 1 of 1)
jake 2:21PM (2/17/2008)
Yeah, I think it is appropriate to have qualifiers when talking about the auto market in China. There most imported cars are expensive and it is really a luxury to have an imported car. My uncle being a doctor there and having pretty high pay already felt his Honda Fit was a pretty big buy. In the US the Fit would be considered a very cheap car; but not so in China. In China it is mostly the domestic made cars that are considered the cheap economy cars. Add the Hybrid premium to the existing premium and you can alredy see why there will be few people buying the imported hybrids.
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rgseidl 2:52PM (2/17/2008)
Few consumers anywhere have ever volunteered to pay a premium for emissions control equipment. It has always taken government action to require that they be standard issue.
Why should the Chinese behave any differently?
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rmontgomery 3:30PM (2/17/2008)
"Apparently the emissions benefits are insufficient incentive to overcome the huge price premium"
This is news?
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s10 8:11PM (2/17/2008)
Didn't China just impose a more stringent emission ruling?
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GenWaylaid 8:37AM (2/18/2008)
No matter how many hybrid cars the Chinese drive their air will still be severely polluted. Let's convince them to do something about all their coal-fired power plants, THEN consider their cars.
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Kevin 11:27AM (2/18/2008)
You see i naturally don't get that . China whines like a 5 year old school girl about pollution , inflict heavy emissions laws . yet they put on huge tariffs on imported vehicles who have more advanced techonology in the hybrid section such as the pruis. I get the whole concept of protecting your own market . But don't be an a%% about it . The pruis generally cost 3000 to ship yet they want to charge you 9000 more because its am imported car and gets more mpgs than any of the Chinese manufacturers can get . ??????? If the chinese cannot provide it let it be imported duh !Polotics and hypocrites remove them and you get a better world
~Kevin
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