Doug’s comments above are all the more reason this should have happened ten years ago:
Up, up and away.
China’s new energy passenger vehicle wholesale volume in January, 2019 totaled 91,175 units, surging 186% year on year (YoY), while dropping 43% month on month (MoM), according to the China Passenger Car Association (CPCA).
Last month, the BEV sales leaped 268% from a year ago to 72,175 units, yet still 44% less than that of the previous month. The sales of all-electric cars and SUVs skyrocketed 177% and 1134% over a year earlier respectively to 48,611 units and 23,403 units.
The PHEV sales presented a YoY increase of 55% with 19,000 units sold in January. Of that, SUV sales substantially jumped 86% to 12,061 units and the car sector held the other 6,939 units with a YoY growth of 20%.
The percentage of BEV sales in Jan. edged down to 79% in 2019 from 81% in 2018. Accordingly, the proportion of PHEV sales in Jan. climbed to 21% this year from 19% a year ago.
I have opined before that China is going to be “ground zero” for EV deployment. The greater Chinese population does not have a history with personal or family ownership of cars as is the case with many developed countries. Without this history, the romanticization of the automobile and the ICE that exists among gear-heads in the western world should be far less prevalent. Against this background, the average Chinese consumer is likely to be sold on the convenience of home charging and the lower maintenance and running costs of EVs as opposed to notions of speed and power promoted by ICE proponents. In addition the average Chinese consumer, lacking a history with conventional automobiles should have less preconceived notions of what a car should be. In other words what western consumers see as inconveniences of owning an EV, Chinese consumers getting their first car will just view as normal aspects of owning a car, having never experienced ICE ownership. On top of all that, there is the very recognizable smog problem.
A significant factor in Chinese auto-manufacturing is that that their production appears to be primarily for the domestic market. I believe that the Chinese central planners have decided that there is little prospect of displacing established global car brands on the world market any time soon and have decided instead to focus the national effort on “New Energy Vehicles”. If China develops a leadership position in battery electric vehicles they could pose a significant problem for the established global brands.
On another front, if the Chinese government takes the threat of global warming seriously, they need to put in place policies to stop the export of coal burning power plants. In my neck of the woods two proposed coal electricity generation plants have been floated, dangling the carrot of industrial developments that need the electricity that the proposed plants would generate.
KINGSTON, Jamaica – Jamaica’s works minister says a Chinese company wants to build its own coal-fired plant to generate power to build a hoped-for $1.5 billion port project.
China Harbor Engineering Co. wants to develop a transshipment port in a swath of southern Jamaica that would lure the deep-drafting ships expected to start using the Panama Canal when its expansion is completed.
It aims to build an industrial park, container terminal, logistics zone and shipping berths to accommodate “post-Panamax” vessels carrying a bigger share of regional cargo, much of it from China.
A second proposal was floated but faced some serious push back:
Our nation is in danger. The 1,000-MW coal-fired plant to be built by the Chinese company Jiuquan Iron & Steel at Nain, St Elizabeth, has too many negatives associated with it and should not be presented to the Jamaican people as a fait accompli.
The Government says it will create 3,000 jobs, include bauxite mines, an alumina refinery, a local electricity network, and more, but the danger is the fuel to be used. It will be powered by coal!
The most recent news on this development seems to have come from the government news agency:
Chairman of the JSEZA, Metry Seaga, provided details during a media briefing at the Authority, Waterloo Road, St. Andrew, on Wednesday (June 20).
Mr. Seaga said the park’s phased development will involve the establishment of a bauxite/alumina refinery and an electricity plant to power this and other businesses that are set up; and a smelter that will underpin JISCO’s focus on manufacturing aluminium and its by-products locally.
“I think it is important that we, as Jamaicans, understand the game changer that this is going to be. It is going to transform, not only St. Elizabeth, but all the towns around it. Most importantly, this has the backing of the Government of the People’s Republic of China. This is real and we are going to make it happen,” the Chairman said.
Meanwhile, Mr. Seaga, who indicated that this is part of a wider project targeting housing developments, said JISCO has given an undertaking that liquefied natural gas (LNG) will be utilised to generate power.
I am somewhat intrigued but not surprised by the fact that the developers are choosing to go the expedient route of FF powered electricity generation, despite the fact that Nain is nestled in a valley between two mountains that are the site of Jamaica’s best wind resources and home to the island’s only commercial wind farms (total about 100MW). I would much rather the Chinese export some of their renewable energy technology to the island and take advantage of the abundant renewable energy available. Hopefully this may yet happen.