Beyond your dreams: Dream car production in China

Text and Pix by Gamini Sarath Godakanda

What an exciting moment it would be if you have an opportunity to see the production of the dream car in China. Then how about personally meeting with top management and discussing their plans to make it environment-friendly? 

During a visit to China last week we, a group of delegates from six countries which included four members from Sri Lanka, had that exciting experience. The Chinese People’s Association of Peace and Disarmament, a Beijing-based think tank, had arranged this unforgettable event. The Sri Lankan delegation comprised members from the Pathfinder Foundation, Bandaranaike Centre for International Studies and the Institute of National Security Studies. They joined other representatives from Cambodia, Indonesia, Malaysia, Myanmar and the Philippines. 

The initiative was focused on promoting exchanges, friendship and cooperation between the Chinese and people of other nations, thus making contributions to bilateral relations, regional peace and stability and common development. The theme of the program was ‘How to promote the people-to-people bond within the One Belt One Road (OBOR) initiative’. The joint delegation consisted of various leaders from research institutes, think tanks, the media and other social organisations, providing a comprehensive overview of people-to-people exchanges and cooperation between China and its neighbours.

After a formal discussion in Beijing, we all flew to the city of Shenzhen. Shenzhen is in South-eastern China and is a major city in Guangdong Province which serves as a modern metropolis that links Hong Kong to China’s mainland. That changed in 1979 when Shenzhen was promoted to city-status and in 1980 designated China’s first Special Economic Zone. Shenzhen was one of the fastest-growing cities in the world during the 1990s and 2000s. 

BYD

The city also features contemporary buildings such as the 600-metre-tall skyscraper Ping, an international finance centre, and a number of amusement parks. BYD Auto Ltd. is an internationally-recognised Chinese automobile manufacturer which works in this area. It was founded in 2003 and its principal activity is the design, development, manufacture and distribution of passenger cars and buses sold under the BYD brand. BYD was the world’s top-selling plug-in electric car manufacturer with over 100,000 units delivered in 2016, followed by Tesla Motors. 

So here we were in Shenzhen, Southern China’s premier economic zone, finally turning into BYD’s headquarters. Asia-Pacific Auto Sales Division Senior Regional Manager Cherish Liu told us that BYD, which stands for Build Your Dreams, was poised to become the first Chinese car company to make a splash in international markets. 

‘The privately-owned firm made its first foray into the United States in 2011. We now export cars to Africa, South America and the Middle East,” she said. 

“We are very interested to fill the gap in the electric bus service in Asia currently heavily run by biofuel. It will change the regional endearment concept too.’’ 

When our group visited the automobile section the authorities told us that ‘’a recent report noted that Sri Lanka was a potential market’’.  

‘’Promotions for the electric car, the services and products mix must be changed in Colombo. BYD expressed little worry over the country’s tax on electric cars; not only Sri Lanka but Asian countries too. Our company feels that the tax rates should be kept low for the next few years and then be taken off,” Liu said.

Going green

China’s impressive economic growth over the last three decades has led to several environmental issues. Air pollution contributes to the deaths of about 1.6 million people every year. Around one-fifth of the country’s farmland is polluted by heavy metals. And nearly 75% of people in China list air and water pollution as major concerns, a UNDP report announced. 

To tackle these issues, China plans to introduce policies that steer people away from heavily polluting lifestyles and industries while raising people’s awareness of sustainable lifestyles, environmental protection and energy efficiency. The Chinese Government wanted new energy vehicles, such as electric cars, to account for more than 30% of the new vehicles bought by public institutions in 2016. By 2020, new energy vehicles will be widely used as the Government increases the number of charging facilities for electric cars and lowers the cost of electricity.

Sri Lanka’s future automobile sector is seen shifting to a green-focused market with the entry of automotive companies with a passion for environmental conservation. Sri Lanka’s motor vehicle market is taking a turn toward electric vehicles because they are ‘zero pollution’.

New findings in Sri Lanka suggest that hybrid vehicles are being registered at an increasing rate. In addition, electric cars also seem to be increasing in popularity as the Nissan leaf entered the Sri Lankan market and local manufacturers are keen to capitalise on the popularity of these green vehicles by launching their own models but they are not that technologically developed. 

This seems to be a dramatic shift towards eco-vehicles. One part of the community is very concerned about the future, and is looking for ways to minimise their impact on global warming. Dream car production in China is at a top stage now. China has spent billions of dollars on subsidies to help companies, including Warren Buffett-backed BYD and BAIC Motor, with large-scale production.