BAIC plans 3 new-energy vehicle plants (2)

Lin Yi, executive director of BAIC Motor Electric Vehicle Co Ltd, a wholly owned subsidiary of BAIC Group, said that the company's three models of new electric cars have been produced and some of the cars have been sold to taxi companies, bus companies, and some business partners of BAIC.

A total of 300 electric taxi cars have been running in Beijing's suburban regions such as Miyun county and Pinggu district since summer, and the taxis performed well with an average daily route of 120 to 150 km, he said.

The company's electric cars have not been sold in the car yards yet, and at least one model of the electric cars will be produced on a large scale and sold to consumers at car yards next year, he said.

The cost of each electric car is about 230,000 yuan on average, and electric-car buyers could enjoy a subsidy of about 120,000 yuan, with 60,000 yuan from the central government and the rest from the Beijing municipal government.

"The market price of electric cars will be about 100,000 yuan after deductions with the government subsidy," he said.

Apart from the subsidy, the government has also made some favorable policies for electric cars. For example, electric-vehicle buyers could be exempt from the car-plate lottery system, under which less than 2 percent of applicants are allowed to buy new vehicles.

Lin said that consumers are not very enthusiastic about electric cars, given the fact the engine power is weak and the battery cannot support a long drive.