Alternative-energy models hit China's auto market

HANGZHOU - As automakers worldwide gear up to produce alternative-energy vehicles, BMW is on track to fulfill its own commitment to save energy and reduce emissions while enhancing driving pleasure.

The company recently held a test drive for its ActiveHybrid 7 Series sedan and X6 sports activity coupe along Thousand Island Lake in eastern China's Zhejiang province.

The two models are the company's first hybrid cars in volume production. They went on sale in China after the Beijing auto show in April.

Powering the ActiveHybrid 7 Series is a 4.4-liter eight-cylinder petrol engine, an electric motor and a lithium-ion battery. The model consumes 9.4 liters of gasoline for every 100 km on average, 17 percent less than conventional 7 Series models.

The X6 is a full hybrid car that can be powered solely by electricity when driven at speeds below 60km/h. Under conventional power it offers maximum power of 357kW and a top torque of 780 Nm.

The company says both models are milestone products that mark the beginning of a new phase in its "EfficientDynamics" strategy.

Long-term strategy

BMW began to implement the long-term strategy in 2002 with the aim to reduce fuel consumption and carbon emissions in its full range of products.

In its first phase, BMW raised efficiency primarily through the improvements in its internal combustion engines and the use of lightweight body materials and aerodynamics.

From 1995 to 2009, average fuel consumption across its entire fleet sold in Europe decreased by 25 percent.

The company started the second or mid-term phase of the strategy this year with extensive use of "intelligent energy-flow management" technology on its hybrid and electric models, including the ActiveHybrid 7 Series and X6.

While every car manufacturer is going its own way, eventually they will all probably arrive at the same place with the same technology, said Christoph Stark, president and CEO of BMW Group Region China.

"The question is who will be there first with a better solution," he said, adding that BMW is well-prepared for the race in future technologies.

According to Stark, his confidence stems from the carmaker's ability to think ahead and act early, as the company pushes technological development rather than being pulled along by the tide.

BMW will bring 50 Mini E electric cars to China later this year for a field test after trials in the US, the UK and Germany.

The company wants to see how people use the cars in their daily lives such as how many miles they drive and where they prefer to charge the battery, said Stark.

With the data collected from China and other countries, the company plans to roll out a "megacity vehicle" in 2013, which he said "is a whole new concept, not just an old car with a new drivetrain".

Incentive program

The Chinese government recently launched an incentive program for fuel-efficient vehicles in five cities that provides up to 60,000 yuan in subsidies toward the purchase of plug-in hybrid and pure electric cars.

Stark said it's a good idea to subsidize new technologies at the beginning, but over the long haul technologies will only work when economically feasible.

The subsidy currently only applies to locally made vehicles, so foreign carmakers can only benefit when producing new-energy cars at their Chinese joint ventures.

Stark said that the company will "surely" have future local production of alternative-energy vehicles in China and would like to use local components in them.

The company broke ground for a new plant at its joint venture with Brilliance Auto in Shenyang earlier this month that is scheduled to began operation in 2012 and eventually boost BMW's local capacity to 300,000 units a year over the long term.

While analysts are beginning to express concerns about overcapacity and excess inventories in the overall Chinese auto market, Stark said that BMW has a long-term commitment that does not change by quarterly performance.

BMW posted brisk sales in the first five months of this year, delivering almost half of its yearly goal of 120,000 units.

Stark said at the moment the company can barely keep up with the demand. "Every car that is produced, every car that is imported is sold almost the next day," he said.

Due to such robust activity, Stark said quality rather than quantity is his watchword.

"I always say my target is to be the most successful, but part of being successful for me is to be the most respected brand."

"So the quality of management, products, service and networks - those are what will carry us to the future."

China Daily

(China Daily 06/21/2010 page18)