Over 90 per cent of Chinese consumers are interested in buying or leasing an electric vehicle (EV) a new survey has found, although there are still challenges to overcome if the world’s largest automobile market is to embrace the technology.
China’s 12th five year plan has targeted increasing the amount of EVs on its roads, as well as producing a million cars each year by the end of the decade. The new survey, undertaken by consultancy giant Deloitte, concluded that the plan will spur the development and adoption of electric vehicles.
“The plan anticipates growth of urbanization, an increase in research and development to 2.2 per cent of GDP, and the reduction of carbon emissions by 17 per cent,” said John Hung, managing partner in the automotive sector at Deloitte China. “These factors are likely to create conditions that are ripe for EVs,”
Around half of the 1,163 Chinese respondents to the survey identified themselves as first movers in purchasing or leasing an EV, compared with just 12 per cent in the US, 16 per cent in Europe, and four percent in Japan, home to many of the largest EV manufacturers.
Two thirds also said they were “much more likely” to consider buying electric should the cost of fuel rise to 10 RMB per litre (US $1.53), while 85 per cent would feel more motivated should prices top 12 RMB (US $1.83).
However, other results indicate concerns over EV performance may hamper adoption.
More than half of respondents said if they were to purchase an EV, they would not be willing to wait more than two hours to fully recharge the battery - well outside the standard charging capabilities of most current cars. Only 18 per cent considered eight hours, a standard charge time, acceptable.
Moreover, almost 70 per cent said they would expect their EVs to be able to travel 320km on a single charge, again out of reach of the majority of current pure electric models, while 85 per cent demanded the widespread availability of public charging stations.
Manufacturers will also be pressed to deliver advanced EVs at the same price or cheaper than petrol counterparts. The survey suggests around 60 per cent of consumers are not willing to pay more than a $1,000 premium for an EV and over half expect to pay less than 130,000 RMB (US $19,856) total, including government incentives.
“The challenge for automakers in China with respect to mass adoption will be to maximize their margins while pricing EVs to meet the expectations of consumers,” said Po Hou, managing partner of Deloitte China’s automotive sector. “As many consumers are not likely to pay a premium for EVs, government incentives such as personal subsidies will be very important to their purchasing decisions.”
