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Pollution control is one of the top priorities of the Chinese government. Closing polluting industries or moving them away from cities is an obvious solution, And there are systematic changes, with one coming in the auto industry. China plans to eventually phase out gas-powered vehicles. In today's special series Beyond the Wall, CGTN correspondent Han Bin visits two Chinese car makers. They are preparing for the day when the ban goes into effect, with electric cars, or EVs.
Today, we are going to look at two electric vehicle factories in a new way. China is investing in low-carbon transport, to make its cities cleaner. And even in this third-tier city of Weifang, the local government has encouraged residents to buy electric vehicles.
LIU XIANGWU, CHAIRMAN SHENGRUI TRANSMISSION CO., LTD. "These charging piles are built by the local government. But people prefer conventional cars for convenience. I think it will take quite some time before pure electric cars can be popular in Weifang."
Liu Xiangwu says EV cars in China are not profitable for the time being, but that doesn't mean auto companies should ignore the technology ready for the future market. It's often a balancing act. His company is an engine parts supplier. Its leading technology is the 8AT automatic plug-in gearbox. It broke the control bottleneck of western countries, and has brought down the price industry-wide. But this advantage won't secure profits for long, as China's auto industry is going electric.
LIU XIANGWU, CHAIRMAN SHENGRUI TRANSMISSION CO., LTD. "This is our newly developed plug-in hybrid gearbox. This is a prototype. It will be on sale in October. The hybrid can get 100 kilometers per 1-2 liters. Conventional cars should use around 10 liters. Here we test our core components which convert traditional 8AT gearboxes to new energy gearboxes. Technically speaking, the conversion will not be difficult. We expect hybrid plug-in EVs will be the mainstream of the Chinese market in the coming 20 to 30 years. Of course, we will develop pure electric gearboxes in the next step."
KONG FANLONG, CO-PRESIDENT HOZON NEW ENERGY AUTOMOBILE CO., LTD. "Welcome to Hozon."
Though sales growth is not promising, competition is heating up in the market. This car production company is one of the latest in new energy automobiles. China is committed to having its companies at the forefront of the future of transportation.
KONG FANLONG, CO-PRESIDENT HOZON NEW ENERGY AUTOMOBILE CO., LTD. "We started building this production line in 2014 and began operation early this year, with an annual production capacity around 80,000. It's targeting private car owners and car-sharing companies. The battery range is around 300 kilometers. It's an inevitable trend that new energy vehicles can solve the problems of energy consumption and environmental pollution. As an alternative to traditional vehicles, NE vehicles are bound to have a big impact on the auto industry. Because the power consumption has changed, from fuel-based engines to batteries, the whole industry will change greatly, too. And with China's advantage in leading technologies in AI and the internet, China may have a chance to stand on the same level with advanced countries. In the future, new energy vehicles will not only become a means of travel, but also a way of life. They may serve as an important connection with the development of smart cities and transport."
LIU XIANGWU, CHAIRMAN SHENGRUI TRANSMISSION CO., LTD. "Our technology has been leading the way for the past decade. But the country's new EV strategy becomes a new test for growth. We have to face up to the challenge."
This transformation may go beyond saving oil or clearing the sky.
KONG FANLONG, CO-PRESIDENT HOZON NEW ENERGY AUTOMOBILE CO., LTD. "I hope the government can provide more preferential policies, like financial bonuses and license approval, and set up more charging piles."
China is targeting some 2 million annual EV sales by 2020. The commitment is having a huge impact on the car industry.
LIU XIANGWU, CHAIRMAN SHENGRUI TRANSMISSION CO., LTD. "Opportunities or challenges? There are both opportunities and challenges, but we are confident to meet the challenges. You can't stop change? Absolutely not. Otherwise, we'll be eliminated by this market."
KONG FANLONG, CO-PRESIDENT HOZON NEW ENERGY AUTOMOBILE CO., LTD. "There will be various difficulties, for example, lack of funding, technology bottlenecks. But the new-energy vehicles are entering into a track of fast growth. Despite all these challenges, I do believe we'll see a rainbow after the storm."
China hopes to clean up its act with electric vehicles. But it will take a breakthrough in range, to get more Chinese behind the wheel.
HAN BIN TONGXIANG, ZHEJIANG "China's electric vehicle incentives could enable the world's biggest auto market to become the world's largest EV market. The country is still a major polluter, but it's moving beyond being commercially driven. Han Bin, CGTN."