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Electrification and autonomous driving trends continue to dominate the headlines at the Beijing autoshow. As car makers and tech companies pour billions of dollars into the two areas, when will it all pay off for the average motorist? Xia Cheng reports.
Automakers are tagging along China's triple digit growth in new energy vehicle sales. Volkswagen is steering away from the diesel gate scandal with 34 billion euros in R&D, hoping to become the champion in electric car by 2025. It is also reportedly working with Didi Chuxing on mobility services.
XIA CHENG Nearly every brand and segment of the company will get some sort of electric offering. We are talking about Bentley, Porsche and Lamborghini.
FRANCESCO SCARDAONI MANAGING DIRECTOR OF CHINESE MAINLAND, HONG KONG & MACAO, LAMBORGHINI "Right now focus on PHEV, but we also look for future. Just released a new concept car, third millenials car. We want to create car not only eletrification, battery, different kind of battery, different power, curve, body of car different, different material, generate electricity, recover itself when damaged."
The battle is even more fierce in less rarefied price ranges. Nissan and BMW also want to lead the EV race--plus, homegrown e-car models are getting in on the game. The new breed of automakers is introducing cars as digital devices, aimed at luring millenials. Ford is considered late to the game. But it is catching up.
PETER FLEET ASIA PACIFIC PRESIDENT, FORD MOTOR COMPANY "We already on sale today, gaining pluggin assembled in China. 50 new cars by 2025, 15 at least will be electrified. First of our global battery e-car will come to China and will be assembled in China."
But how will the market hold once subsidies are withdrawn?
DOUG BETTS SENIOR VP OF GLOBAL AUTOMOTIVE, J.D. POWER "A lot more talk on e-cars than actually do. Automakers for e-cars generally not profitable on them, without incentives, cost of battery too high. Plugging hybrid is different. You can subsitute the gasoline, longer range, smaller battery. PHEV continue to grow in a faster rate, than pure e-cars with the current conditions."
And AI hasn't become a must-have feature yet for those behind the wheel.
DOUG BETTS SENIOR VP OF GLOBAL AUTOMOTIVE, J.D. POWER "I think AI, most people don't know what to think about it, what the benefit it has. So like anything new, going to take time. Not going to pay as we see now. We have to find the spot where customers are willing to pay for it. So that automakers can make money."
As smart and green mobility picks up pace, automakers will continue to navigate all the possible scenarios for future transportation. Those trials and errors will be crucial to reshape the century-old auto industry. Xia Cheng, CGTN, BEIJING.