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Changan to Produce Hybrid Lineup

21-12-2007

Changan Automobile Group will speed up development of hybrid cars in the coming several years. The automaker is considering applying hybrid technology to all of its passenger vehicles.

"We will invest another 300 million yuan ($41 million) by 2012 to develop hybrid cars," says Changan's spokesperson Zhou Qin.

Zhou spoke after Changan rolled out a gasoline-electric hybrid model in Chongqing on Dec. 13. The vehicle will not be commercially produced until July or August next year.

Changan is among a group of domestic and oversea automakers that will launch hybrids in China in the coming several years, including General Motors, FAW Group, Dongfeng Motor and Chery Automobile.

The market for hybrids in China is small. They cost more than the equivalent standard auto, and the government offers no incentives to build or purchase fuel-saving hybrids. Hybrids use a gasoline engine and one or more electric motors to power the wheels.

Toyota Motor is the only automaker producing hybrids in China. But the company only sold about 300 hybrid Prius hatchbacks in China this year through October, according to Automotive Resources Asia, a division of J.D. Power and Associates.

But Kuang Jinwen, sales general manager of Changan's passenger cars, says Changan forecasts an optimistic future for hybrids. "The trend is market growth," he says.

Zhou and Kuang say Changan will ask the Chinese government for favorable policies for hybrids, such as discounts on the purchase tax and road maintenance fees.

Changan's first hybrid is a small wagon refitted from its existing gasoline model, the Joice. It carries a 1.5-liter gasoline engine and an electric-power system consisting of an integrated starter generator and nickel-metal hydride batteries.

Zhou and Kuang say the company developed the hybrid technologies by itself.

The vehicle burns about 6.8 liters of fuel for every 100 kilometers in tests, about 20 percent less than the gasoline version. Maximum speed is 160 kilometers per hour.

Zhou says the hybrid system will add less than 20,000 yuan ($2,714) in production costs to the car. The gasoline version of the Joice sells at a starting price of about 90,000 yuan ($12,211).

But Kuang says the company will not start commercial production of the hybrid until July or August next year. It wants to have 10 ready for the Beijing Olympics.

Zhou says Changan has several dozen engineers working on hybrid projects. They spent six years on the first model.

Changan mainly produces mini cars, but the company plans to develop a full line of passenger cars in the coming several years and wants to build seven sedan platforms by 2010.

Kuang says Changan will try to export the hybrids in the coming several years, but plans are still being studied.

Kuang adds the company is also developing other new sources of energy for vehicles, such as hydrogen, biofuels, and electricity.

At present, Changan runs two joint ventures in Chongqing, one w ith the Ford-Mazda alliance and the other with Suzuki Motor Corp.


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