U.S. electric vehicle plans fail China still firmly targets

The coldness of the consumer has caused the U.S. government to change its radical goal of developing electric vehicles. A few days ago, the U.S. Department of Energy stated that the goal of deploying 1 million electric vehicles by 2015 could not be achieved.

However, on the other side of the ocean, China is still firm in its goal of 500,000 cars in 2015 and 5 million electric cars in 2020. Local governments have increased the electric car industry and supported more funds to enter this new industry.

The U.S. government electric vehicle program was first proposed by President Barack Obama during the 2008 election and started in 2009. In 2011, the analysis report of the US Department of Energy's “Deployment of 1 Million Electric Vehicles by 2015” plans to promote the development of electric vehicles from the perspectives of purchasing cash back and granting incentives for community electric vehicle infrastructure construction, but as of now the effect is not good. In 2012, pure electric vehicles sold 14,687 units in the United States, which was only 0.1% of the total vehicle sales in the United States.

Currently, ECOtality, which received a loan of 114.8 million U.S. dollars from the U.S. Department of Energy, is accepting an insider trading investigation by the U.S. Securities and Exchange Commission because the company's electric vehicle charging stations installed in the U.S. are less than half of its mission.

Andy Harris, head of the Energy and Environment Experts Group of the US House of Representatives' Scientific Committee, criticized the Obama administration’s proposal to “provide up to $10,000 in tax concessions for consumers who buy electric cars.” He pointed out that “demand is weak and reliable. Sexual problems have plagued auto companies in the introduction of electric vehicles." The US Consumer Reports and the New York Times pointed out that pure electric vehicles cannot meet the daily needs of vehicle owners and have hidden problems in reliability.

It is worth noting that the U.S. manufacturers of electric vehicles have all encountered electric vehicle combustion or water inrush short-circuit events, indicating that the safety of electric vehicles remains hidden. In addition, American battery company A123 has been acquired by Chinese parts and components company Wan Xiang, electric vehicle company CODA is close to bankruptcy, and electric vehicle Fisker company faces the situation of being acquired by a foreign company.

Due to poor sales, Nissan Motor Co., which is the most active globally promoting electric vehicles, has also changed its focus and shifted its focus toward hybrid vehicles. Nissan Caroline CEO Carlos Ghosn stated: "We will continue to promote electric vehicles, but we are businessmen and pragmatists. We will develop and produce hybrid vehicles because there are both markets and consumer needs."

Despite the difficulties of electric vehicles in the United States, China still adheres to this new energy vehicle development path. According to the “Energy Conservation and New Energy Vehicle Industry Development Plan (2012~2020)” released in July 2012, the cumulative sales of electric vehicles in China will reach 500,000 in 2015 and 5 million in 2020.

According to data from the China Association of Automobile Manufacturers, 12,791 electric vehicles (including pure electric vehicles and plug-in hybrid vehicles) were sold in 2012, accounting for approximately 0.7% of all car sales in the year. If we want to achieve the sales target of 500,000 electric vehicles in 2015, the average annual compound growth will reach 350% on the basis of 2012.

The main buyers of electric vehicles in China are government and public utilities, such as city buses and taxi companies. Although local governments have introduced high subsidies, private buyers are still very few.

In an interview with the reporter, Feng Shiming, consulting director of Ming Wage Consulting Co., Ltd., said in an interview with reporters: “There is no substantial progress for electric vehicles driven by private consumer purchases. Icebreaking can only be achieved through government procurement and public utilities, but what is the effect of this model? It is still doubtful as to how long it will last and how large it will be. It is not realistic to achieve sales of 500,000 vehicles in 2015."

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