China’s comparative advantage over the US and the EU in electric power-driven transport vehicles

During the last decade in China, huge investments have been made by the Chinese government in the field of public bus electrification, taxis and private-use cars, leading China to pioneer today technological in the field of electric powered batteries, infrastructure and sales of all types of electric vehicles.

More than 400000 electric buses are currently circulating throughout China, covering 98% of urban transport needs, when in the EU there are 2400, USA 700, UK 377, India 400 and in the rest of the world 800 respectively.

by Thanos S. Chonthrogiannis

©The law of intellectual property is prohibited in any way unlawful use/appropriation of this article, with heavy civil and criminal penalties for the infringer.

A BYD made Bus
Photo by Spielvogel, CC0

The basis of this amazing Chinese technological progress

China’s technological advances in this field were achieved due to the utilization as a basis for developing a Chinese multinational company named Build -Your -Dreams (BYD) based in Shenzhen. The company itself initially started in 1995 as a battery company, and in its course, it was strengthened thanks to the brave and powerful subsidies from the Chinese government.

BYD Company in 2003 entered in the automotive sector. It currently employs 220000 employees and cooperates with Daimler AG and Mitsubishi Motors. It produces the Denza car, while it specializes in the production of cars, trucks, buses and lifting mechanisms based on both the internal combustion engines and the electric drive. At the same time, it produces hybrid models that they combine the internal combustion engines with the electric drive.

The world’s largest car market

China is now the world’s largest market in conventional vehicles. At present, electric vehicles cover 4% of the total market, while the Chinese government has set a target of reaching 50% by 2025.

The Chinese government in its effort to limit the export of foreign currency to the car market, with a view to the Chinese automakers gaining an ever greater percentage of this target set for the replacement of conventional vehicles in the Chinese car market, has produced a series of measures in this direction.

In particular, it subsidies with a high amount the purchase of electric vehicles through the reimbursement of excise duty, while delaying and having made expensive the handling of the registration license of conventional vehicles within the country. The aim is to facilitate the development of the new industry of electric vehicles.

The weakness of European automakers

Chinese electric powered cars have begun to be exported to the demanding European market. The small electric cars of European construction are sold at a price close to €30000. The European electric SUV will be available with a selling price of around €50000, while the model of the American company Tesla is sold close to €100000 in the EU.

At the same time the electric SUV U5 of the Chinese company Aiways will be placed on the EU market at a cost of €25000!!!!

Even if the European automakers wanted to produce electric cars in bulk in order to shed their cost of production and of course their selling price, there are no basic infrastructure number (charging points) in EU member countries to facilitate the shift of the consumers towards the purchase of such electrically powered vehicles.

Member countries such as Germany, France, Poland, Spain and Italy should have already created more than 100000 charging points on their territory to trigger mass production of electrically powered cars of European construction from the European car manufacturers.

The conversion of the EU and the US into Electrically powered vehicles

To quickly pass both the US and the EU in the era of the mass use of electrification, the whole process must be started from replacement of the buses, the taxis and creating the appropriate infrastructure.

If thousands of charging points are created both in the territory of each member country and throughout the territory of the EU, and given the will of the governments of the EU member countries and the respective US states, then it should be done and mass replacement of buses in urban transport.

Certainly, the cost of obtaining an electric bus is twice as much as a conventional bus. This is due to the cost of batteries, which with current technology have a lifespan of seven-ten years, while the bodywork of electric buses has a lifespan of around twelve years.

But the fact that the orders of electric buses will be massive, this alone will lead to lower cost of acquisition.

For the proper operation of electric cars, large and strategically placed charging areas are required. The prerequisite of all this is to make infrastructure projects along the road axes to recharge these buses and since they will be charged within two-three hours and have an autonomy of 200-250 kilometers. At the same time, fiscal incentives and generous subsidies should be given to replace the taxi fleet in both the EU and the US.

It is not possible for the EU to boast of sustainable environmental and green development when it is not progressing rapidly to replace the bus and taxi fleet in its territory. In this type of green development direction, all citizens will be involved but will be perceived by all citizens as they will improve their quality of life by reducing air pollution and protecting their health.

Add a Comment

Your email address will not be published. Required fields are marked *

error: Content is protected !!