China's New Energy Drive: Domestic carmakers to offer premium electric SUVs
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According to the latest data from the China Association of Automobile Manufacturers, auto sales in China slowed during the first-11-months of 2017, but sales for new energy vehicles picked up fast. In addition, more and more domestic carmakers have started offering premium new energy vehicles to rival overseas brands. Xu Xinchen has more.
Nomi, an in-car artificial intelligence system, can help drivers control most of the electronics in an automobile -- the air conditioner, music player, and even seat adjustment. Sounds futuristic enough, the new tech is offered by Chinese car maker, NIO.
Often referred to as the Chinese version of Tesla, NIO is now giving car buyers a chance to purchase one of its new electric SUV's, with deliveries starting in the first quarter of next year.
XU XINCHEN BEIJING With a price half of Tesla, this vehicle is a pretty competitive offer packed with technology -- artificial intelligence, autonomous driving and swappable batteries. NIO is not the only Chinese domestic car maker with more premium products to rival overseas brands, as the popularity of Chinese car brands picks up.
Other Chinese companies like BYD and Great Wall have also been rolling out premium cars. BYD's top-of-the-line electric SUV can compete with top tier foreign brands but is only priced at around half a million yuan. Great Wall now offers an electric SUV model under its premium badge - WEY. While passenger car sales in China only grew by 2% between January and November this year, sales for new energy vehicles jumped over 50% and domestic brands edged up in market share. Car shoppers say they are starting to trust Chinese car brands more.
CAR SHOPPER "I am now pretty confident in China's capability in technology, and I am pretty proud if there are premium cars that have new energy technology."
CAR SHOPPER "Buying cars manufactured by domestic brands can help save you a lot of trouble during maintenance, because for some overseas brands, it takes times for some of the components to become available here in China."
Experts agree.
MICHAEL ADICK, MANAGING DIRECTOR ACCENTURE AUTO INDUSTRY GREATER CHINA "Domestic carmakers have great advantages in their innovative power. As in so many areas in China, the industry players in this field have the ability to leapfrog, to go beyond and offer services and infrastructure to people that maybe global OEMs haven't thought up yet."
As for NIO, some 10,000 ES8 have already been pre-ordered.
LI BIN FOUNDER & CHAIRMAN, NIO "China's auto industry is now the world' largest -- we have the market, we have the talent, and we have strong capabilities in automaking. Chinese car brands should now be more confident about elevating their brands and offering competitive products to the world."
The China Association of Automobile Manufacturers predicts new energy car sales will continue to boost the Chinese auto market. While China's auto market expanded at a single digit rate this year, compared with last year's 15% percent, the number of passenger cars sold in China is still much higher than in the US -- the second largest auto market in the world.