Automaker aims to boost sales in domestic and international markets

The car industry may be taking tentative steps toward producing new energy vehicles with a focus on small models, but SAIC Motor Corp Ltd, China's largest automaker, is thinking big.

At the recent Auto China 2016 show in Beijing, SAIC Maxus, a subsidiary, displayed two large zero-emissions vehicles: the seven-seat EG10 and 15-seat EV80.

A Production line of SAIC Motor Corp, whose subsidiary SAIC Maxus displayed two large zero-emissions vehicles at the recent auto China show in Beijing. Provided to China Daily

What's more, the automaker is already thinking about exports, particularly to the Middle East, Australia and New Zealand, even though the governments there are not as zealous as China in encouraging environmentally friendly cars, company executives say.

"We're in this for the long term. If you invest a lot, you earn a lot eventually," says Shawber Guan, SAIC Maxus' overseas business sales manager.

SAIC Motor will also step up efforts to increase sales of its new energy vehicles in China, adds Wu Fengjie, its regional deputy general manager for sales.

Three major initiatives will mark SAIC's efforts. First, it will focus on urban families for the EG10, and travel agencies and mobile businesses for the EV80. (To popularize the concept, SAIC Maxus designed an EV80 mobile coffeeshop for the expo.)

Second, heavy investment will be made toward changing the mindset of people in global markets. "We have already made a good start," Guan says. "Supportive government policies and advanced technologies are good but not enough. We'll increase our advertising budget to explain the advantages of new energy vehicles to consumers in target markets."

Third, SAIC will support creation of the necessary infrastructure like charging points. "It'd be good if city-level governments could emulate Shanghai, where buyers of new energy vehicles get free number plates that otherwise cost 86,000 yuan ($13,200; 11,500 euros)," Guan says. "The city will install 10,000 charging stations in the next three years."

Executives say SAIC's green cars can cover a distance of 150 to 200 kilometers on a full charge, enough to cover the daily needs of an average couple with children.

This year, in China, the company aims to sell 6,000 EV80s, priced about 500,000 yuan, and 1,000 EG10s, priced at 400,000 yuan.

"Our e-vehicles can attain speeds of up to 200 kilometers per hour. We can use our manufacturing capacity to make up to 20,000 units a year," Guan says.

It was reported that a senior official with the People's Liberation Army was impressed with SAIC's new energy vehicles at the expo, he says. "But we're not intending to actively seek government orders.

"We're proud of our quality and reputation. The government's support for new energy vehicles is encouraging. Past that, if we also receive orders, we'd be very glad."

In the Middle East, the United Arab Emirates is reported to be keener than others to switch over to new energy cars.

After the Dubai Motor Show in November, local distributors requested that SAIC arrange a few sample vehicles for extended test runs, Guan says.

As European Union regulations move toward the Euro 6 standard for emissions, which is expected to increase demand for e-vehicles, SAIC also plans to target that market, including Britain, he adds. "We also have long-term plans to enter the US and Canada."

siva@chinadaily.com.cn