Hyundai to make New EV model for China

In a bid to boost its presence in the world’s largest automobile market, Hyundai Motor Co. will develop a new electric vehicle (EV) brand. Beijing Hyundai Motor Co. plans to introduce a new EV model in the first half of 2012 to meet the growing demand in China. The company is a joint venture between Hyundai Motor and Beijing Automotive Co. China earlier announced it would invest more than 100 billion yuan (US$ 15.5 billion) to help develop hybrid and electric cars. The country’s programs, which encourage an eco-friendly automobile market, has resulted in the sale of more than 10,000 new energy vehicles last year. Last May, the government launched a program that subsidizes the private purchase of alternative fuel cars in Shanghai, Hangzhou, Changchun, Hefei and Shenzhen. It offered carmakers as much as 50,000 yuan (US$7,831) for every plug-in hybrid car, and a maximum of 60,000 yuan (US$9,397) for every full electric vehicle. The chairman of the World Electric Vehicle Association, Chen Qingquan, said the volume of new energy vehicles in China is expected to reach 500,000 by 2015 and up to 1 million in 2020. Hyundai reported that it sold 363,473 units in the January-June period, compared to 328,692 units last year. As of last month, the Korean automaker’s cumulative auto production in China reached more than 3 million vehicles. (September 8, 2011)