A pioneering electric taxi project in China's southern economic powerhouse of Shenzhen seems a success by most accounts.
Riders are enthusiastic, there have been no accidents and drivers are termed “gracious,” not a term usually applied to mainland drivers.
The pilot project, which could be replicated in other cities, underpins China's ambitious plans to put at least half a million electric vehicles (EV) and plug-in hybrids on the road by 2015.
But even with government support and the popular support of e-taxi customers, challenges remain for electric vehicles such as the e-taxis to gain broader acceptance and widespread use.
Charging stations are few and far between, repair shops are hard to find and the cars are costly. Even after generous government support, the Shenzhen e-taxi costs 80 percent more than the Volkswagen Santana that ordinarily cruises the streets of Shenzhen.
“The electric car is still too expensive and we ended up paying a lot more than for a (VW) Santana, even with government subsidies,” said Du Jun, general manager of Pengcheng E-taxi, the taxi operator participating in the pilot project.
Local carmakers, from SAIC Motor to Dongfeng, have pledged massive investments in greener vehicles. Global automakers, including BMW and Nissan, are also working with local governments to roll out their E-Mini and Leaf respectively.
For China to hit its EV targets however, will mean quickly winning market acceptance for an untested technology.
“I think it's going to be a very, very long time because the Chinese consumer, at the end of the day, is very pragmatic and wants a reliable car with a petrol engine. They don't want to be the ones experimenting,” said Michael Dunne, president of industry consultancy Dunne & Co. in Hong Kong.
“You're going to see government fleets buying, buses buying, not a mass movement towards electrics, definitely within the five years.”
HAPPY RIDERS, WARY OPERATOR:
In 2009, the Chinese government picked Shenzhen, along with 12 other cities, to lead the migration to green vehicles. Shenzhen and Hangzhou are the only ones attempting to launch e-taxi fleets.
State-controlled Pengcheng E-Taxi, partly owned by BYD, a major domestic manufacturer of green vehicles, was incorporated in March 2010. Fifty e6 cabs, made by the Warren Buffett-backed automaker, hit the roads in the city three months later.
“People are really interested in the car. Over 90 percent of customers start asking questions once they get in. And it's not just me. All my colleagues have similar experiences as well,” said Zeng Xiweng, one of the company's top drivers.
Shenzhen resident Daniel Li recently took a ride in an electric taxi, one of the red cars with a wavy white band around the body that have been operating around the southern Chinese city for more than a year.
“I like the car. It's big and sturdy, pretty much like an SUV but not as noisy. It also saves me the 3 yuan fuel surcharge,” the 32-year old software engineer said as he got out of the taxi. “The problem is there aren't many out there.”
BYD is using the pilot project to gather market feedback and make adjustments to the vehicles before rolling out the electric car nationwide.
“We had anticipated a lot of problems early on, but that did not happen and the data we've collected are actually better than what we got in lab tests,” Stella Li, senior vice president of BYD, said in an interview.
But for Du Jun of Pengcheng, the project's hurdles are apparent. The company is still sitting on a big loss that Du blames on hefty upfront investments, insufficient charging spots and the limited distance that an EV can travel per charge.
And then there's the cost. Though cheaper to operate, BYD's e6 taxi costs 179 800 yuan after deducting 120 000 billion yuan in subsidies, compared with less than 100 000 yuan for Volkswagen's Santana.
In Hangzhou, a similar green pilot programme stumbled when all the 30 of the city's electric taxis, which appeared on the streets in late January, were pulled from service in April after one cab's engine compartment caught fire. The fleet resumed operations in June.
“Taxis are definitely a smart way for people to gain the kind of practical hands-on, in-the-field experience, but it will be very closely watched,” said William Russo, an industry veteran who runs the Synergistics consulting firm in Beijing. -Reuters