Chinese automotive manufacturing company Geely will electrify 90 percent of its models by 2020

Geely Automobile Holdings Ltd. said it will equip more than 90 percent of its models with alternative powertrains-- like plug-in hybrid or all-electric-- by 2020.

12/16/15 4:00 am chumakdenis 1

Chinese automotive manufacturing company Geely announced a plan of making 90 percent of its models electric by 2020.

Moreover, to put its money where its mouth is, the company started sales of its very first electric car on 18th of November, with a price of 228,800 yuan ($35,875) before government subsidies of about 108,000 yuan.

Such a bold move is caused by new government’s requirement:  China has a deadline requiring automakers to lower average fuel consumption across their models from 6.9 liters per 100 kilometers (60 miles) this year to no more than 5 liters/100 km (60 miles) by 2020.

Here’s what An Conghui, president of Zhejiang Geely Holding Group Co., said on that:

“Geely is officially stating that it will be the first automotive company in China to reach the government’s vision for a 5 liter/100 km fuel directive by 2020.”

“We aim to allow consumers to realize their dream of driving powerful, extremely fuel efficient vehicles.”

Also, An Conghui said that about two-thirds of Geely’s new-energy vehicle sales will come from plug-in hybrids and gasoline-electric hybrids by the end of the decade, with the remaining from battery-electric vehicles.

Besides, it has been said that the company intends to make “substantial progress” on fuel cell vehicles by 2020 too, but we can’t say if it’s so for sure since details were not provided.

A few words about Geely Auto

Geely (officially Zhejiang Geely Holding Group Co., Ltd) is a Chinese multinational automotive manufacturing company headquartered in Hangzhou, China. Its principal products are automobiles, taxis, motorcycles, engines and transmissions. It sells passenger cars under the Geely and Volvo brands and taxis under the London Taxi brand.

Geely Auto climbed 5 percent to HK$4.17 in Hong Kong, the biggest gain since Oct. 15. The benchmark Hang Seng Index advanced 1.4 percent.

Prognosis

It remains to be seen whether the company will bring all of these statements into life or it won’t.

Our existing automotive market is still a scattershot and it’s really hard to say something definitive.

Nonetheless, there is one thing we know for sure: air pollution is a huge problem in China and the Chinese government does its best to spell the end for it.

Last month the officials of People's Republic of China (PRC) have made the development of EVs a strategic initiative as part of a broader push to lead in the automotive technology, curb pollution and cut dependence on imported oil. The government said it will boost subsidies to speed up the building of recharging stations and has banned cities from imposing purchase restrictions on new-energy vehicles.

Well, providing all existing problems will be solved (high costs of EVs, limited driving ranges and a shortage of charging facilities), the probability of EVs becoming popular in China is quite high.

Let’s wish China good luck with that and wait more news from Geely.

China will focus on improving infrastructure and technology to promote sales of alternative-energy vehicles in its 13th Five-Year Plan ending 2020. Priorities will include building more charging stations and improving battery efficiency.