16 State-owned Enterprises Establish Grand Alliance New Energy Vehicle Expected to Enter “Fast Track”

The major coalition of new energy vehicle central enterprises known as the "China's new energy vehicle carrier" was established on August 18, 2010. Many companies will participate in the event, but only 16 central enterprises are involved in forming the "large coalition of new energy vehicle central enterprises." This is another new energy auto alliance after the domestic automobile enterprises established the “TOP10 Electric Vehicle Alliance” in 2009.

The 16 enterprises of the New Energy Vehicle Central Enterprises Alliance have covered automobiles, petroleum, aerospace, IT, and electric power. At present, the companies participating in the alliance are FAW, Dongfeng and Changan Automobile.

Changan Automobile stakeholders said that the establishment of alliances by 16 central SOEs has positive significance for the central SOEs to vigorously upgrade new energy technologies and share resources and reduce costs in parts and components. The cooperation of the central enterprises can produce synergies. At the same time, the links between upstream and downstream of China's new energy industry chain will also be opened to accelerate the maturity of China's new energy vehicle industry.

Relevant persons believe that the establishment of the Central Enterprise Alliance can balance the interests of the industry. Some industries invest in new energy to make money. In some short-term situations, it is difficult to see the benefits. The central government alliance can effectively balance the interests of various companies, and companies can reduce short-term Concerns for doing great things. This is a great advantage for the development of new energy vehicles.

According to reports, the alliance has also initially determined the direction of technology and product development, and locked the technology of pure electric vehicles and related core components. In the way of participating companies, the alliance plans to establish a platform to exchange, discuss and develop common technologies for electric vehicles.

However, for some time, some central SOEs have announced their entry into the field of new energy vehicles, but there have also been "individual battles." For instance, as announced by the State Grid, by the end of 2010, 75 electric vehicle charging stations and 6,209 charging piles will be completed. This huge project will involve 27 provinces and cities; Sinopec will use Beijing as a pilot area and will have a larger scale in the city. The refueling and refueling stations have been transformed into oil (gas) electricity integrated service stations and gradually promoted throughout the country; CNOOC plans to build charging stations in more than two capital cities through a joint venture company (Putian Sea Oil). The auto makers also pointed out that the alliance must be able to achieve positive and effective development, and there are numerous challenges to overcome.

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