Chen Yudong: Policy green light electric car will achieve large-scale commercialization

How does an overseas auto parts giant with an annual sales income of 47 billion euros view the global investment in new energy vehicles? How to layout the new energy automotive market represented by electric vehicles? To this end, the reporter interviewed Chen Yudong, president of Bosch (China) Investment Co., Ltd.

Reporter: Electric vehicles have become a global hot spot. Whether it is the policy support of the competent department or the financing, the green light will be given to the electric vehicle project. On May 9th, BYD Auto, which is known for its electric vehicles, has returned to A shares and has obtained approval from the China Securities Regulatory Commission. However, the opposition to the overheated investment in electric vehicles is also high. How do you see this problem?

Chen Yudong: We have also relatively recognized electric vehicles. In the next decade or even two decades, electric vehicles will eventually realize large-scale commercialization. But now we are faced with a big problem, namely the non-standardization of electric vehicles. Almost every vehicle company is doing its own project. In fact, when the electric vehicle market is still in its infancy, it should not disperse investment excessively. It is not necessary for every OEM to produce motors and batteries. This will not achieve scale effect. If ten host plants do a piece, their market demand is tens of thousands of units, then the scale effect is bigger than a single enterprise.

In addition, if every electric car project can be truly oriented toward production, not just demonstration operations, the overheated climate for electric car investment will come down. In fact, many domestic vehicle companies do a good job on electric vehicles, such as Shanghai Automotive and Changan Automobile.

Reporter: What are the inputs of the Bosch Group in new energy vehicles?

Chen Yudong: In the automotive component industry, Bosch is the company that invests the most in R&D. We have established a complete product line on the powertrain system of hybrid and electric vehicles, including batteries, motors, and chassis brake systems for electric vehicles. Taking the motor field as an example, we have cooperated with Daimler to develop and reproduce electric motors for pure electric vehicles in Europe. We are planning to establish a joint venture with a half-shareholding. It is expected that an agreement will be reached in the first half of 2011. Joint production will start in 2012 and the relevant motors will be used on Mercedes-Benz and smart electric vehicles. It will then be sold to other automobile manufacturers.

Reporter: The Chinese authorities are interested in raising the localization rate of core parts for new energy vehicles. Does the Bosch Group have plans for mass production in China?

Chen Yudong: The Bosch Group has ten basic principles, including six on localization. We have taken the lead in mass production of related core components. In 2010, we established the Electric Drives Business Unit within the joint venture company, United Automotive Electronics Co., Ltd., and successfully launched the two leading projects for new energy automotive technologies. This will promote the production of key components for hybrid and electric vehicles in 2012; 2013 New energy vehicles equipped with Bosch technology will be mass-produced in China.

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Jinzhou Jinshi Mining Equipment Technology Co., Ltd. , https://www.jsminingeqpt.com