New ‘low budget’ electric SUV to conquer Chinese automotive market. Image source: Shutterstock (#591749546)
A business venture between Nissan, Renault and Dongfeng has been signed to form eGT New Energy Automotive Company, which will produce electric cars for the Chinese market that sells for $8,000. Together, the new company plans on designing a small SUV that will solely operate on battery power and will then be built by Dongfeng. This allows the new electric car to compete with gasoline-powered vehicles positioned at the lower end of the Chinese automotive market.
China is actively pushing the development and sales of electric vehicles by requiring manufacturers to produce so-called ‘new energy’ vehicles that should equal 8 per cent of their total in-country sales by the end of 2018.
The Chinese Ministry of Industry and Information Technology plans to increase the annual output of new energy vehicles to 2 million units by 2020 – this would account for more than 20 per cent of new car sales by 2025.
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