First published in Cleantech magazine Issue 4 2011. Copyright Cleantech Investor Ltd.
The Thames Valley Chamber of Commerce based BCC LinkToChina Programme, with the support of The China Council for the Promotion of International Trade or CCPIT (the Chinese Chamber of International Commerce), has identified opportunities in the UK for investment in electric vehicles. The project, backed by the National Chambers of Commerce (BCC) and the CCPIT, is targeting Oxfordshire and the Thames Valley as a potential source of business opportunities. Minister Counsellor for the Chinese Embassy in the UK, Zhou Xiaoming, recently visited the project’s Slough-based Head Office on a trip which looks set to herald a formal matchmaking delegation of Chinese investors to the UK later this year. According to Dr Kegang Wu, Chief China Adviser, British Chambers of Commerce, the Chinese government and companies are keen to find opportunities to work with innovative British companies.
Dr Wu is overseeing the work of LinkToChina, a partnership between the British Chamber of Commerce and CCPIT, which is promoting co operation between companies in the UK and China through the UK-China Business Matchmaking Project. LinkToChina has extended an invitation for businesses in the EV sector and other business sectors to propose projects to Chinese parties for export to China and inward investment from China. Under the LinkToChina umbrella, British firms can benefit from professional advice and information and benefit from trade and investment opportunities with their Chinese counterparts. 15 Chinese cities and provinces are taking part in the project, in partnership with UK cities and countries.
China’s electric vehicle industry looks set for rapid growth. The Chinese government aims for one in 20 cars to be electric by 2015 and for the nation to be the world’s leading producer of electric vehicles by the end of this decade. Electric vehicle trials are underway in Chinese cities including Shanghai, Changchun, Shenzhen, Hangzhou and Hefei and the Chinese government has allocated RMB100bn (£9.4bn) for research and development in the EV sector over the coming decade.
Chinese EV manufacturers include BYD, the company which famously received investment from renowned US investor Warren Buffett. The German automotive giants have been important investors in China’s electric vehicle industry. Germany’s Daimler has also teamed up with BYD, which produces the F3DM plug-in hybrid and the E6 pure electric EV. The Daimler/BYD alliance is reported to be planning to launch an EV vehicle range by 2013. BMW is also working with a Chinese partner, Brilliance Auto, to develop an electric version of the BMW 5 Series, exclusively for the Chinese market. And Volkswagen is working with state owned Chinese automotive manufacturer, FAW Group, to develop a new brand – the Kaili electric vehicle, an affordable car for Chinese consumers.
Chinese automotive companies have been investing in British car brands for some time. Nanjing Auto acquired technology relating to the Rover in 2005 (the cars are sold under the Roewe brand in China as they weren’t able to purchase the Rover marque). Nanjing, which was subsequently acquired by SAIC (Shanghai Automotive Industry Corporation), in 2007 also acquired the MG brand. More recently – the Bristol brand was acquired by the Xinjiang No1 Tractor Company.
The UK may no longer be able to boast of a car industry to match that of Germany. However, there is a wealth of automotive industry expertise in the UK and there are a host of innovative companies working on the development of new technology in the electric vehicle and related spaces. Many of these are based around the Silverstone hub – in Oxfordshire and the Thames Valley. If interest in the UK electric vehicle industry from China translates into deals between British and Chinese companies, we can expect to see British technology being incorporated into models to be sold in what looks set to become the world’s largest electric vehicle market. China offers enormous potential for UK companies looking to expand, according to Dr Wu.
For more information on LinkToChina visit www.linktochina.org
Contact Dr Kegang Wu at: 01753 870 571 or email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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